Refer to the diagram, where xy is the relevant budget line and I₁, I₂, and I₃ are indifference curves. At point K,
A)MU x = MU y.
B)MRS = Pₓ / Pᵧ .
C)MRS = Pᵧ / Pₓ .
D)Pₓ exceeds Pᵧ .

Question

Refer to the diagram, where xy is the relevant budget line and I₁, I₂, and I₃ are indifference curves. At point K,
A)MU x = MU y. 
B)MRS = Pₓ / Pᵧ . 
C)MRS = Pᵧ / Pₓ . 
D)Pₓ exceeds Pᵧ .

Quizplus · Accepted Answer

The Answer of  Refer to the diagram, where xy is the relevant budget line and I₁, I₂, and I₃ are indifference curves. At point K,
A)MU x = MU y. 
B)MRS = Pₓ / Pᵧ . 
C)MRS = Pᵧ / Pₓ . 
D)Pₓ exceeds Pᵧ .

Refer to the Diagram, Where Xy Is the Relevant Budget