CUET Economics - Which of the following indicates a situation of consumer's equilibrium for a rational consumer consuming two goods? | PYQs + Solutions

CUET Economics 2025 15 May Shift 1

Micro

Medium

The point at which the budget line just touches (is tangent to), one of the indifference curves.

The absolute value of the slope of the indifference curve (MRS) is greater than that of the budget line (price ratio) at that point.

A point below the budget line.

The point at which the consumer spends all his/her income and the budget line intersects one of the indifference curves.

✅ Correct Option: 1

CUET Economics 2025 15 May Shift 1 PYQs