Which of the Following Statements Is Not True

question 92

Multiple Choice

Which of the following statements is not true?

• A) If tea and coffee are perfect substitutes in your consumption, then you will only consume the good with the lowest price.
• B) If tea and coffee are perfect substitutes in your consumption, then you will consume some quantity of both goods if the prices of tea and coffee are equal.
• C) You view coffee and donuts as perfect complements, and the corners of your indifference curves follow the 45-degree line. As long as your income and the prices of coffee and donuts are positive, you will not choose a corner solution.
• D) You view coffee and donuts as perfect complements, and the corners of your indifference curves follow the 45-degree line. You will consume coffee and donuts at some point along the 45-degree line where your MRS equals the price ratio for the two goods.