[amp_mcq option1=”(ii) and (iii)” option2=”(i) only” option3=”(iii) only” option4=”(i) and (ii)” correct=”option1″]<\/p>\n
The correct answer is (i) and (ii) only.<\/p>\n
At consumer equilibrium, a consumer is maximizing their utility given their budget constraint. This means that they are consuming a combination of goods that lies on their highest attainable indifference curve and that is also on their budget line.<\/p>\n
Option (i) is true because if Clarice is at consumer equilibrium, she must be consuming a combination of goods that lies on her budget line. This is because her budget line represents all the combinations of goods that she can afford given her income and the prices of goods.<\/p>\n
Option (ii) is also true because if Clarice is at consumer equilibrium, she must be consuming a combination of goods that lies on her highest attainable indifference curve. This is because her indifference curves represent all the combinations of goods that give her the same level of utility.<\/p>\n
Option (iii) is not true because it is possible for Clarice to be at consumer equilibrium and not be dividing her budget equally across all goods. For example, if Clarice has a strong preference for one good over another, she may choose to consume a lot of that good and very little of the other good, even though this means that she is not dividing her budget equally between the two goods.<\/p>\n
In conclusion, the correct answer is (i) and (ii) only.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”(ii) and (iii)” option2=”(i) only” option3=”(iii) only” option4=”(i) and (ii)” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-51083","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n