At the Optimal Consumption Bundle, Which of the Following Conditions

question 48

Multiple Choice

At the optimal consumption bundle, which of the following conditions does not hold?

• A)The indifference curve is tangent to the budget line.
• B)The ratio of marginal utilities of any two goods are equal to the ratio of their prices.
• C)The marginal utility per dollar spent is equal for all goods consumed.
• D)The prices of the goods in the optimal bundle are equal.

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Definitions:

Conditional Sale Contracts

Agreements where the sale of goods or property is conditional upon certain terms, typically the buyer making payments over a period, with the title remaining with the seller until conditions are met.

Purchase Price

The amount of money paid to acquire a good, service, or asset.

Combined Equivalent

The unified outcome or measure that represents the aggregate result or impact of several elements.

Scheduled Payments

Payments that are planned and set to occur at regular intervals over a specified period.