Multiple Choice
Which one of the following is true at the best affordable choice of a consumer?
A) Marginal rate of substitution exceeds the slope of the budget line.
B) Marginal rate of substitution is less than the relative price of the good measured on the x-axis.
C) All income is spent.
D) The consumption choice is outside the budget line.
E) Other consumption points along the consumer's budget line lie on higher indifference curves.
Correct Answer:

Verified
Correct Answer:
Verified
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