Which of the following is not true regarding the outcome of a consumer’s optimization process ? Options: A . &nbspThe marginal utility per dollar spent on each good is the same B . &nbspThe marginal rate of substitution between goods is equal to the ratio of the prices between goods C . &nbspThe consumer’s indifference curve is tangent to his budget constraint D . &nbspThe consumer has reached his highest indifference curve subject to his budget constraint E . &nbspThe consumer is indifferent between any two points on his budget constraint

Which of the following is not true regarding the outcome of a consumer’s optim

Question - Which of the following is not true regarding the outcome of a consumer’s optimization process ?

Options:

A . The marginal utility per dollar spent on each good is the same

B . The marginal rate of substitution between goods is equal to the ratio of the prices between goods

C . The consumer’s indifference curve is tangent to his budget constraint

D . The consumer has reached his highest indifference curve subject to his budget constraint

E . The consumer is indifferent between any two points on his budget constraint

Answer: Option E
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