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Question
Points K and T will NOT be attained by the consumer. Select the reason from the options given below.
Options
K does not lie on any IC and entire money is not spent at T.
K is beyond the financial capacity of the consumer and T provides a lower level of satisfaction.
Equilibrium should be unique and that is point E.
K gives more of both the goods A and B and T gives less B.
Solution
K is beyond the financial capacity of the consumer and T provides a lower level of satisfaction.
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