The slope of the budget constraint, when a consumer has reached optimal consumption of two goods, is equal to the
A. Total utility for the two goods.
B. Marginal rate of substitution.
C. Cross-price elasticity of the two goods.
D. Marginal rate of indifference.
Answer: B
Economics
You might also like to view...
What does the slope of a consumer's indifference curve represent?
Economics
Economists use the term variable costs to refer to
a. prices of inputs that are subject to sudden change, like fuel. b. an increase in the price of any input. c. costs that vary with the type of final product being produced. d. costs that vary with the quantity of output produced.
Economics