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Karen Consumes Chocolate and Candles

Question 106

Multiple Choice

Karen consumes chocolate and candles.When Karen is at her best affordable point,she is


A) on or inside her budget line,on her highest attainable indifference curve,and has a marginal rate of substitution between chocolate and candles that is equal to the relative price of chocolate and candles.
B) on the indifference curve that is closest to the origin and minimizing the marginal rate of substitution.
C) on the indifference curve that is farthest from the origin and maximizing the marginal rate of substitution.
D) on her budget line,on her highest attainable indifference curve,and has a marginal rate of substitution between chocolate and candles that is equal to the relative price of chocolate and candles.
E) on her budget line,on her highest attainable indifference curve,and maximizing the marginal rate of substitution.

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