Multiple Choice
An optimising consumer will select a consumption bundle in which the:
A) marginal rate of substitution is equal to income
B) marginal rate of substitution is equal to the relative price
C) ratio of expenditure shares equals the marginal rate of substitution
D) utility exceeds price
Correct Answer:
Verified
Correct Answer:
Verified
Q88: A budget constraint shows the bundles of
Q89: When the price of a good decreases,
Q90: Refer to the information provided.What is the
Q91: Consumers are able to select the prices
Q92: To reach a higher indifference curve a
Q94: Which of the following statements are true?<br>i.
Q95: Refer to the information provided.Assume that Diane
Q96: A utility-maximising individual will consume a bundle
Q97: Select the true statements that follow.When the
Q98: Explain the relationship between the budget constraint