Multiple Choice
A consumer chooses an optimal consumption point where the
A) marginal rate of substitution exceeds the relative price ratio.
B) slope of the indifference curve equals the slope of the budget constraint.
C) ratio of the prices equals one.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The direction of the substitution effect is
Q155: At a consumer's optimal choice, the consumer
Q340: A rational consumer maximizes her<br>A)preferences.<br>B)marginal rate of
Q342: When the price of an inferior good
Q343: Hold the prices of goods, as well
Q344: Figure 21-18 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-18
Q346: Figure 21-6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-6
Q347: Which of the following statements is not
Q349: An optimizing consumer will select a consumption
Q350: Figure 21-31 The figure shows two indifference