An Optimising Consumer Will Select a Consumption Bundle in Which

question 93

Multiple Choice

An optimising consumer will select a consumption bundle in which the:

• A)marginal rate of substitution is equal to income
• B)marginal rate of substitution is equal to the relative price
• C)ratio of expenditure shares equals the marginal rate of substitution
• D)utility exceeds price

---

Definitions:

Team Development Process

A series of stages teams typically go through to evolve from forming to performing, encompassing storming, norming, and performing phases.

Final Stage

The last phase in a process or sequence of events, often implying the completion of some development or progression.

Kurt Lewin's Change Model

A framework for managing change in organizations that involves three stages: unfreezing, changing, and refreezing.

Moving

The second step in Lewin’s change model, in which new attitudes, values, and behaviors are substituted for old ones.