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If a Person Consumes Only Two Goods,which of the Following

Question 277

Multiple Choice

If a person consumes only two goods,which of the following is NOT necessary for a consumer to be at his or her best affordable point of consumption?


A) The consumer chooses a bundle of goods that lies on his or her budget line.
B) The consumer is on his or her highest attainable indifference curve.
C) The consumer chooses equal amounts of both goods.
D) The marginal rate of substitution between the two goods is equal to the relative price of those two goods.
E) The indifference curve is tangent to the budget line.

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