The optimal level of consumption occurs where the marginal rate of substitution is greater than the sum of the relative price and the consumer has spent all his or hers income.
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Q35: An increase in income will cause the
Q36: The goal of a consumer can be
Q37: The income effect is the change in
Q38: Giffen goods are characterised by upward sloping
Q39: If a good is a perfect substitute,
Q41: The indifference curves of perfect substitutes are:
A)straight
Q42: With respect to the utility of the
Q43: When income increases, a budget constraint will:
A)shift
Q44: Graph 22-1 Q45: Graph 22-1 
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