Which of the following is true about the consumer's optimum consumption bundle? At the optimum, a. the indifference curve is tangent to the budget constraint. b. the slope of the indifference curve equals the slope of the budget constraint. c. the relative prices of the two goods equals the marginal rate of substitution. d. all of the above are true. e. none of the above is true
Which of the following is true about the consumer's optimum consumption bundle? At the optimum, a. the indifference curve is tangent to the budget constraint. b. the slope of the indifference curve equals the slope of the budget constraint. c. the relative prices of the two goods equals the marginal rate of substitution. d. all of the above are true. e. none of the above is true
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter5: Consumer Choice: Individual And Market Demand
Section5.A: Appendix Analyzing Consumer Choice Graphically: Indifference Curve Analysis
Problem 3TY
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Which of the following is true about the consumer's optimum consumption bundle? At the optimum,
a. the indifference curve is tangent to the budget constraint.
b. the slope of the indifference curve equals the slope of the budget constraint.
c. the relative prices of the two goods equals the marginal rate of substitution.
d. all of the above are true.
e. none of the above is true
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