The Tangency Condition for the Optimal Choice for a Consumer $\mathrm { MRS } _ { x , y } = P _ { y } / P _ { x }$

question 2

True/False

The tangency condition for the optimal choice for a consumer is given by $\mathrm { MRS } _ { x , y } = P _ { y } / P _ { x }$ .

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Definitions:

Homeostatic Mechanism

A process by which biological systems maintain stability and balance in response to external changes.

Incentive

Something that motivates or encourages an individual to take action or to perform a behavior.

External Goal

An objective or target that an individual aims to achieve, which is set outside of themselves, such as career achievements or material possessions.

Motivate Behaviour

The process of influencing or stimulating an individual to act in a certain way or pursue particular goals.