Karen Consumes Chocolate and Candles

question 55

Multiple Choice

Karen consumes chocolate and candles.When Karen is at her best affordable point,she is

• A)on or inside her budget line,on her highest attainable indifference curve,and has a marginal rate of substitution between chocolate and candles that is equal to the relative price of chocolate and candles.
• B)on the indifference curve that is closest to the origin and minimizing the marginal rate of substitution.
• C)on the indifference curve that is farthest from the origin and maximizing the marginal rate of substitution.
• D)on her budget line,on her highest attainable indifference curve,and has a marginal rate of substitution between chocolate and candles that is equal to the relative price of chocolate and candles.
• E)on her budget line,on her highest attainable indifference curve,and maximizing the marginal rate of substitution.

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