Multiple Choice
Use the following to answer questions:
Figure: Consumer Equilibrium III
-(Figure: Consumer Equilibrium III) Look at the figure Consumer Equilibrium III. Given the figure, which of the following statements is TRUE?
A) At the point of utility maximization, the rate at which Kurt is willing to exchange one good for another is less than the rate at which the goods can be exchanged in the market.
B) An increase in the prices of tamales and placemats would allow Kurt to attain point B.
C) At point E, Px = Py.
D) Point E is the point of utility maximization under current budget constraints.
Correct Answer:

Verified
Correct Answer:
Verified
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