If the MU\P Ratio for Two Goods Is the Same

question 170

Multiple Choice

If the MU\P ratio for two goods is the same, then

• A)the slope of the budget constraint between the two goods is equal to the marginal rate of substitution (MRS)between the two goods.
• B)the indifference curve between the two goods is concave to the origin.
• C)the prices of the two goods are the same.
• D)it follows that consumers prefer fewer goods to more goods.

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Fiedler's Model

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