The tangency condition for the optimal choice for a consumer is given by $\mathrm { MRS } _ { x , y } = P _ { x } / P _ { y }$ .

Question

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The tangency condition for the optimal choice for a consumer is indeed given by $\mathrm { MRS } _ { x , y } = P _ { x } / P _ { y }$. The tangency condition for optimal choice for a consumer states that the marginal rate of substitution (MRS) between two goods must be equal to the ratio of their prices (Px/Py). Hence, the statement is true.

The Tangency Condition for the Optimal Choice for a Consumer MRSx,y=Px/Py\mathrm { MRS } _ { x , y } = P _ { x } / P _ { y }MRSx,y​=Px​/Py​

The Tangency Condition for the Optimal Choice for a Consumer $\mathrm { MRS } _ { x , y } = P _ { x } / P _ { y }$