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Which One of the Following Is True at the Best

Question 26

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.

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