Solved

A Consumer Is in Equilibrium When the

Question 210

Multiple Choice

A consumer is in equilibrium when the


A) consumer is buying any combination of goods and services on his or her budget line.
B) consumer is buying the combination of goods and services on the budget line and on the highest attainable indifference curve.
C) marginal rate of substitution is as small as possible.
D) marginal rate of substitution is as large as possible.
E) marginal rate of substitution exceeds the relative price of the two goods by as much as possible.

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