QUESTION 6 A consumer chooses an optimal consumption point where the a. marginal rate of substitution...
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QUESTION 6 A consumer chooses an optimal consumption point where the a. marginal rate of substitution equals the relative price ratio. b. slope of the indifference curve exceeds the slope of the budget constraint. C. ratios of all the marginal utilities are equal. d. A All of the above are correct. QUESTION 7 A budget constraint illustrates the a. · prices that a consumer chooses to pay for products he consumes. b. consumption bundles that give a consumer equal satisfaction. C. purchases made by consumers. d. consumption bundles that a consumer can afford. QUESTION 6 A consumer chooses an optimal consumption point where the a. marginal rate of substitution equals the relative price ratio. b. slope of the indifference curve exceeds the slope of the budget constraint. C. ratios of all the marginal utilities are equal. d. A All of the above are correct. QUESTION 7 A budget constraint illustrates the a. · prices that a consumer chooses to pay for products he consumes. b. consumption bundles that give a consumer equal satisfaction. C. purchases made by consumers. d. consumption bundles that a consumer can afford.
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6 Option A is correct marginal rate of substitution equals the re... View the full answer
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
Posted Date:
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