Multiple Choice
Which of the following is true about the consumer's optimum consumption bundle? At the optimum,
A) the slope of the indifference curve equals the slope of the budget constraint.
B) the indifference curve is tangent to the budget constraint.
C) the relative prices of the two goods equals the marginal rate of substitution.
D) none of these answers are true.
E) all answers a to c are true.
Correct Answer:

Verified
Correct Answer:
Verified
Q11: An individual's demand curve for a good
Q52: A Giffen good is an extremely inferior
Q53: Briefly explain heuristics using two examples.
Q54: A family on a trip budgets €800
Q55: If the price of a good falls,
Q56: At the consumer's optimum point, the marginal
Q57: If an increase in a consumer's income
Q58: If the substitution effect of a lowered
Q59: An indifference curve is a curve that
Q61: A budget constraint is a set of