If a Consumer Is Choosing the Bundle of Goods That

question 86

Multiple Choice

If a consumer is choosing the bundle of goods that maximizes utility subject to a budget constraint,then

• A)the rate at which income affects the utility-maximizing choice is equal for all goods.
• B)the rate at which the consumer is willing to substitute between goods is equal to the market rate of exchange.
• C)the ratio of marginal utility to price is equal for all goods.
• D)both b and c
• E)all of the above

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Definitions:

Crutches

Staffs with a cross-piece at the top to place under the arms of a lame person.

Inches

A unit of measurement in the Imperial system equal to 2.54 centimeters, commonly used to measure length.

Injured Extremity

A limb or appendage of the body that has suffered damage or harm.

Cane

A support device used to assist walking, typically designed to bear weight and aid balance.