At the Consumer's Optimum

question 5

Multiple Choice

At the consumer's optimum

• A) the budget constraint will have a slope of MU_x/P_x.
• B) the slope of the indifference curve is equal to the slope of the budget constraint.
• C) the indifference curve will intersect the budget constraint at the midpoint of the budget constraint.
• D) Both b and c are correct.

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Definitions:

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The process by which individuals look for cues from others to make sense of ambiguous situations or to determine appropriate behavior.

Uncle

The brother of one's parent or the husband of one's aunt.

Crawls

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Erikson

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