Which of the Following Statements Is Correct? a Consumer Will

question 115

Multiple Choice

Which of the following statements is correct? A consumer will be maximising utility when:
(i) the indifference curve is tangent to the budget constraint
(ii) the marginal rate of substitution equals the ratio of the prices
(iii) the marginal utility per dollar spent on good x is equal to the marginal utility per dollar spent on good Y

• A)(i) only
• B)(ii) only
• C)(i) and (ii) only
• D)(i), (ii) and (iii) only