At the equilibrium consumption bundle,which of the following holds? A) MRS_X,Y = P_X /P_Y. B) MRS_X,Y = −P_X /P_Y. C) MRS_X,Y = −P_Y /P_X. D) MRS_X,Y = P_Y /P_X.

Name: At the equilibrium consumption bundle,which of the following holds? A) MRS X,Y = P X /P Y. B) MRS X,Y = −P X /P Y. C) MRS X,Y = −P Y /P X . D) MRS X,Y = P Y /P X .
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Quizplus · Accepted Answer

MRS_X,Y = P_X /P_Y at the equilibrium consumption bundle because this condition ensures that the consumer is maximizing their utility given their budget constraint.

At the Equilibrium Consumption Bundle,which of the Following Holds