Suppose a Consumer Consumes Two Goods, X and Y

question 555

Multiple Choice

Suppose a consumer consumes two goods, X and Y. The slope of the budget constraint equals the

• A)marginal rate of substitution.
• B)rate at which the consumer will give up X to gain Y while maintaining the same level of utility.
• C)relative price of the two goods.
• D)All of the above are correct.