A _____ Refers to a Constraint That Holds as Equality

question 17

Multiple Choice

A _____ refers to a constraint that holds as equality at the optimal solution.

• A) dummy variable
• B) first class constraint
• C) slack variable
• D) binding constraint

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Definitions:

Budget Set

The collection of all possible consumption bundles that an individual can afford with their income at current prices.

Line Segments

Part of a line that is bounded by two distinct end points, and contains every point on the line between its endpoints.

Original Bundle

The combination of goods and services initially allocated or owned by a consumer before any trades are made.

Price Of X

The specific cost or amount of money required to purchase a good or service denoted as "X".