A consumer chooses an optimal consumption point where the
A) marginal rate of substitution is maximized.
B) rate at which the consumer is willing to trade one good for another equals the price ratio.
C) price ratio is minimized.
D) All of the above are correct.
Correct Answer:
Verified
Q157: When a consumer is purchasing the best
Q158: Figure 21-20
The following graph illustrates a representative
Q159: Figure 21-19 Q160: A consumer chooses an optimal consumption point Q161: At the consumer's optimum the Q163: An optimizing consumer will select the consumption Q164: An optimizing consumer will select a consumption Q165: A consumer chooses an optimal consumption point Q166: When the indifference curve is tangent to Q167: The relationship between the marginal utility that
A)budget constraint will
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