The Consumer Is in Equilibrium When

question 65

Multiple Choice

The consumer is in equilibrium when

• A)MRT = MRS.
• B)P_x/P_y = MU_x/MU_y.
• C)the budget line is tangent to the indifference curve at the bundle chosen.
• D)All of the above.

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Definitions:

Bearer

A person in possession of a negotiable instrument, such as a check or bond, that is payable to whomever holds it.

Drawer

In the context of banking and finance, it refers to the person who writes or issues a cheque or draft instructing the bank to pay a specified sum.

Unconditional

refers to something that is not subject to any conditions or limitations.

Express Condition

A specific and unequivocal condition in a contract that must be met for the contract's obligations to be enforced or remain in effect.