The set of tangency points between a utility function and a budget constraint at various income levels is called
A) Optimal demand.
B) Income expansion path.
C) Marginal Utility.
D) Normal goods.

Question

Quizplus · Accepted Answer

The income expansion path shows how the optimal consumption bundle changes as income changes, represented by the set of tangency points between a utility function and a budget constraint at various income levels.

The Set of Tangency Points Between a Utility Function and a Budget