If a Person Consumes Only Two Goods,which of the Following

question 277

Multiple Choice

If a person consumes only two goods,which of the following is NOT necessary for a consumer to be at his or her best affordable point of consumption?

• A) The consumer chooses a bundle of goods that lies on his or her budget line.
• B) The consumer is on his or her highest attainable indifference curve.
• C) The consumer chooses equal amounts of both goods.
• D) The marginal rate of substitution between the two goods is equal to the relative price of those two goods.
• E) The indifference curve is tangent to the budget line.

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