Question:
Answer:
General Guidance
The answer provided below has been developed in a clear step by step manner.
Step: 1
Answer 3) The correct option is :
Marginal rate of substitution equals the relative price ratio
the above is answer..
As iit allows you to get utility best possible in relation the price.
Explanation: Please refer to solution in this step.
Step: 2
Answer
3. b) C.
Because At C . Budget line is tangent to IC curve which means C will be the maximum satiable point with the given income
Explanation:
Because At C . Budget line is tangent to IC curve which means C will be the maximum satiable point with the given income.