If a Consumer Is Choosing the Bundle of Goods That

question 11

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