A consumer maximizes satisfaction at the point where his subjective valuation of good X measured as the amount of good Y he or she is willing to give up to obtain an additional unit of X equals
A) the slope of the indifference curve through that point.
B) one over the slope of the indifference curve through that point.
C) Px / Py.
D) Py / Px.
E) Y / Px.

Question

Quizplus · Accepted Answer

The Answer of A consumer maximizes satisfaction at the point where his subjective valuation of good X measured as the amount of good Y he or she is willing to give up to obtain an additional unit of X equals
A) the slope of the indifference curve through that point.
B) one over the slope of the indifference curve through that point.
C) Px / Py.
D) Py / Px.
E) Y / Px.

A Consumer Maximizes Satisfaction at the Point Where His Subjective