Figure 16.2.2 -Which of the Following Is True at the Exchange Equilibrium

Multiple Choice

Figure 16.2.2
-Which of the following is true at the exchange equilibrium between two individuals?

A) Their marginal rates of substitution are equal.
B) The slopes of the individuals' indifference curves are equal.
C) Both individuals' marginal rates of substitution are equal to the ratio of the prices of the goods.
D) A and B only
E) A, B, and C are all true.