In an indifference curve/budget line diagram, a consumer will select the combination of goods that is on the budget line and for which the
A) marginal rate of substitution between two goods is equal to the relative price of the two goods.
B) marginal rate of substitution between two goods is greater than the relative price of the two goods.
C) slope of the indifference curve is less than the relative price of the two goods.
D) slope of the indifference curve is greater than the relative price of the two goods.
A
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Which of the following would shift the supply curve to the left?
A) A fall in the expected future price of the good B) A rise in the expected future price of the good C) A rise in technology that lowers the cost of producing the good D) A positive supply shock that brings more output onto the market
Suppose a firm notices that the price it faces has doubled, but it does not change its level of output. It must be the case that
a. profits have doubled b. the marginal cost curve is falling c. total revenue has decreased d. the original price was less than half of the minimum of the AVC curve e. this situation would not really occur
According to Professor Robert Gordon of Northwestern University, what are the four "headwinds" facing the U.S. economy, and how do they interact with innovation?
Reducing tariffs would make international trade easier, which will increase the general economic welfare of the country
a. True b. False Indicate whether the statement is true or false