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Lesechka [4]
3 years ago
14

An optimizing consumer will select the consumption bundle in which the :

Business
1 answer:
padilas [110]3 years ago
4 0

Answer:

c. marginal rate of substitution is equal to the relative price ratio of the goods.

Explanation:

we know that the costomer MRS = Px/Py , where x and y are the two goods.

MRS(x,y) = MUx/MUy = Px/Py

Therefore, The marginal rate of substitution is equal to the relative price ratio of the goods.

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