At the consumer's equilibrium, the budget line is tangent to the highest attainable indifference curve. At this tangency point, the slope of the indifference curve (absolute value of MRS) equals the slope of the budget line (price ratio). So MRS and slope of budget line are the Same.
If the budget line is tangent to an indifference curve at a point, absolute value of the MRS and the Budget line are at that point.
CUET UG 2023 — Economics Micro
2023mcqeasy
If the budget line is tangent to an indifference curve at a point, absolute value of the MRS and the Budget line are __________ at that point.
Official previous-year question
Verified 13 Jul 2026.
Options
- A
More
- B
High
- C
Less
- D
Same
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