The Slope of the Budget Constraint,when a Consumer Has Reached

question 89

Multiple Choice

The slope of the budget constraint,when a consumer has reached optimal consumption of two goods,is equal to the

• A)Marginal rate of substitution.
• B)Cross-price elasticity of the two goods.
• C)Total utility for the two goods.
• D)Marginal rate of indifference.

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Definitions:

Division

A mathematical operation in which a number, the dividend, is divided by another number, the divisor, to produce a quotient.

Simplify

To reduce a mathematical expression or equation to its simplest form without changing its value.

Complex Fraction

This refers to a fraction wherein the numerator and/or denominator is also a fraction.

Simplify

Simplifying a mathematical expression or equation involves breaking it down to its most basic form to make it simpler to comprehend or resolve.