Solved

You View Tea and Scones as Perfect Complements, and the Corners

Question 102

Multiple Choice

You view tea and scones as perfect complements, and the corners of the indifference curves lie on the 45-degree line. Tea is plotted along the horizontal axis of the indifference map. Also, at your current point of consumption, you have not fully exhausted the available budget, and you consume more tea than scones. Based on this information, which of the following statements is NOT true?


A) The marginal utility of tea equals zero for your current consumption bundle.
B) The marginal utility of scones equals zero for your current consumption bundle.
C) To reach the point of optimal consumption, you must increase your scone consumption.
D) The equal marginal principle does not have to be satisfied at the optimal consumption point for this problem.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents