QUESTION 6 A consumer chooses an optimal consumption point where the a. marginal

Question

QUESTION 6 A consumer chooses an optimal consumption point where the a. marginal rate of substitution equals the relative price ratio. O b. slope of the indifference curve exceeds the slope of the budget constraint O C. ratios of all the marginal utilities are equal O d. All of the above are correct. QUESTION 7 A budget constraint illustrates the a- prices that a consumer chooses to pay for products he consumes. consumption bundles that give a consumer equal satisfaction. O c. purchases made by consumers. O d. consumption bundles that a consumer can afford

Explanation / Answer

6)

marginal rate of substitution equals the relative price ratio

the above is answer..

because it enables you to get utility best possible in relation to price

7)

d. consumption bundles that a consumer can afford.

the above is answer..

as budget constraints means limited money available which determine purchases.

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