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In indifference curve analysis, a point to the left of the consumer's budget line

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In indifference curve analysis, a point to the left of the consumer's budget line

In indifference curve analysis, a point to the left of the consumer's budget line

▸ shows a combination of goods that are beyond the income of the household.

▸ indicates consumption spending beyond current income.

▸ implies the household is paying above-market prices for the goods in question.

▸ implies the household is paying below-market prices for the goods in question.

▸ implies that the household is not spending all of its income on the goods in question.

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Microeconomics

Edition: 17^th

Author: Ragan

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