Assume a convex utility function with an interior solution in which a consumer chooses some of each good.Which of the following is NOT represented by the slope of the budget constraint?
A) marginal rate of substitution
B) relative price of one good (drawn on horizontal axis) in terms of other good (drawn on vertical axis)
C) relative price of one good (drawn on vertical axis) in terms of other good (drawn on horizontal axis)
D) ratio of the marginal utilities
Correct Answer:
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