If a Consumer's Marginal Rate of Substitution Is Greater Than

question 158

Multiple Choice

If a consumer's marginal rate of substitution is greater than the relative price of the goods,the consumer is

• A) at his or her best affordable point.
• B) perhaps at his or her best affordable point.
• C) not at his or her best affordable point and should move along his or her indifference curve to a higher budget line.
• D) not at his or her best affordable point and should move along his or her budget line to a higher indifference curve.
• E) More information is needed to determine if the consumer is or is not at his or her best affordable point.

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Definitions:

Hormones

Chemical messengers produced by glands that regulate physiological and behavioral actions in the body.

Eye Protrusion

the abnormal bulging or forward displacement of one or both eyes, often indicative of a medical condition.

Abnormal

A term used to describe any condition, pattern, or finding that deviates from the accepted norm or standard.

PTH

Parathyroid hormone, a peptide hormone secreted by the parathyroid glands, essential in regulating serum calcium levels.