Suppose You Solve a Consumer's Constrained 2-Good Optimization Problem for a Given

question 16

Multiple Choice

Suppose you solve a consumer's constrained 2-good optimization problem for a given economic environment --- and your answer contains a negative consumption level of good 2.Which of the following is a valid conclusion on your part:

• A)The true optimum has the consumer consume none of good 1.
• B)The true optimum has the consumer consume none of good 2.
• C)There are multiple "true" optimal consumption bundles.
• D)The consumer will sell good 2.
• E)None of the above.

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Ingroup

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