If a Consumer Is Choosing the Bundle of Goods That

question 86

Multiple Choice

If a consumer is choosing the bundle of goods that maximizes utility subject to a budget constraint,then

• A)the rate at which income affects the utility-maximizing choice is equal for all goods.
• B)the rate at which the consumer is willing to substitute between goods is equal to the market rate of exchange.
• C)the ratio of marginal utility to price is equal for all goods.
• D)both b and c
• E)all of the above

---

Definitions:

Risk of Loss

The legal responsibility for the damage, destruction, or loss of property, which can transfer from seller to buyer according to the terms of a contract.

Lease Term

The duration for which a lease agreement is effective.

Quiet Enjoyment

A tenant's right to occupy and use premises without interference from the landlord or others with superior title.

Purchase Price

The amount of money that is paid or will be paid for the acquisition of a good, service, or asset.