When the Marginal Rates of Substitution for Two Consumers Differ

Multiple Choice

When the marginal rates of substitution for two consumers differ:

A) the consumers' indifference curves are tangent.
B) consumers will exchange goods and can end up anywhere inside the area bounded by their indifference curves.
C) consumers will exchange goods and will end up on the contract curve inside the area bounded by their indifference curves.
D) consumers will exchange goods and will end up on the contract curve,but not necessarily inside the area bounded by their indifference curves.