The consumer's optimum choice is represented by
A)MUₓ/MUᵧ = Pₓ/Pᵧ
B)MUₓ/Pₓ = MUᵧ/Pᵧ
C)MRSₓᵧ = Pₓ/Pᵧ
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All the given conditions represent the consumer's optimum choice. A) and C) describe the condition where the marginal rate of substitution (MRS) equals the price ratio, and B) describes the equalization of the marginal utility per dollar spent on each good.

The Consumer's Optimum Choice Is Represented by