Assume the graph shown represents Grace's budget constraint.Which of the following is true?
A) Grace's total utility is constant along her budget constraint.
B) Grace's marginal utility of each good is the same for each combination of goods on her budget line.
C) Grace's total expenditure is constant along her budget constraint.
D) Grace is indifferent between consuming any bundle that lies on the budget constraint.

Question

Assume the graph shown represents Grace's budget constraint.Which of the following is true?
A) Grace's total utility is constant along her budget constraint. 
B) Grace's marginal utility of each good is the same for each combination of goods on her budget line. 
C) Grace's total expenditure is constant along her budget constraint. 
D) Grace is indifferent between consuming any bundle that lies on the budget constraint.

Quizplus · Accepted Answer

The Answer of  Assume the graph shown represents Grace's budget constraint.Which of the following is true?
A) Grace's total utility is constant along her budget constraint. 
B) Grace's marginal utility of each good is the same for each combination of goods on her budget line. 
C) Grace's total expenditure is constant along her budget constraint. 
D) Grace is indifferent between consuming any bundle that lies on the budget constraint.

Assume the Graph Shown Represents Grace's Budget Constraint