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Which Property Characterizes the Consumption Bundle Selected by an Optimizing

Question 124

Multiple Choice

Which property characterizes the consumption bundle selected by an optimizing consumer


A) The ratio of total utilities is equal to the relative price.
B) The ratio of income to price equals the marginal rate of substitution.
C) The marginal rate of substitution is equal to the relative price.
D) The marginal rate of substitution is equal to income.

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