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Joe Consumes Just Two Goods, X1 and X2 and Both

Question 52

Multiple Choice

Joe consumes just two goods, x1 and x2 and both are inessential. His indifference curves are convex. Joe will buy a positive quantity of x1 if:


A) MRS(0, M/p2) > p1/p2.
B) MRS(0, M/p2) = p1/p2.
C) MRS(0, M/p2) < p1/p2.
D) MRS(M/p1, 0) < p1/p2.

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