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Commerce · Q694

Economics

Graduate and Post Graduate · Commerce · question 694

Q694

Which of the following is true if Clarice is at her consumer equilibrium? (i) Clarice is on her budget line. (ii) Clarice is on her highest attainable indifference curve. (iii) Clarice is dividing her budget equally across all goods.

A.
(ii) and (iii)
Answer
B.
(i) only
C.
(iii) only
D.
(i) and (ii)

Answer: Option A

Solution

Answer: Option A
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