590EconomicsMedium
Which of the following is not true regarding the outcome of a consumer’s optimization process?
AThe marginal rate of substitution between goods is equal to the ratio of the prices between goods
BThe consumer has reached his highest indifference curve subject to his budget constraint
CThe consumer’s indifference curve is tangent to his budget constraint
DThe consumer is indifferent between any two points on his budget constraint
EThe marginal utility per dollar spent on each good is the same
Correct answer
D. The consumer is indifferent between any two points on his budget constraint
Explanation
The correct answer is The consumer is indifferent between any two points on his budget constraint.