Excluding corner solutions, in consumer equilibrium, which of the following is true?

Excluding corner solutions, in consumer equilibrium, which of the following is true?



A. The consumer is minimizing utility given the constraints
B. The marginal rate of substitution equals the slope of the budget constraint
C. The consumer can improve his/her situation by consuming more of both goods
D. The indifference curve is steeper than the budget constraint


Answer: B. The marginal rate of substitution equals the slope of the budget constraint


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