Boundary solutions arise when:
A) a good provides a consumer with little value per dollar relative to other alternatives.
B) a consumer has a very low level of income.
C) indifference curves are convex.
D) indifference curves exhibit increasing MRS.

Question

Quizplus · Accepted Answer

Boundary solutions occur when a good provides a consumer with little value per dollar relative to other alternatives, leading the consumer to allocate their entire budget to other goods.

Boundary Solutions Arise When