Which of the following is true?
A) Indifference curves may intersect.
B) At a point of consumer equilibrium, the MRS always equals 1.
C) If income increases, a consumer will always consume more of a good.
D) None of the statements is correct.

Question

Quizplus · Accepted Answer

Indifference curves cannot intersect, the MRS at equilibrium equals the price ratio, and an increase in income doesn't always lead to more consumption of a good due to the nature of inferior goods.

Which of the Following Is True