A consumer chooses an optimal consumption point where the marginal rate of substitution equals the relative price ratio. slope of the indifference curve exceeds the slope of the budget constraint. O ratios of all the marginal utilities are equal. All of the above are correct.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 12SQ
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A consumer chooses an optimal consumption point where the Group of answer choices marginal rate of substitution equals the relative price ratio. slope of the indifference curve exceeds the slope of the budget constraint. ratios of all the marginal utilities are equal. All of the above are correct.
A consumer chooses an optimal consumption point where the
marginal rate of substitution equals the relative price ratio.
slope of the indifference curve exceeds the slope of the budget constraint.
ratios of all the marginal utilities are equal.
All of the above are correct.
Transcribed Image Text:A consumer chooses an optimal consumption point where the marginal rate of substitution equals the relative price ratio. slope of the indifference curve exceeds the slope of the budget constraint. ratios of all the marginal utilities are equal. All of the above are correct.
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