Which of the following statements is correct? The consumer's indifference curves are concave. An indifference curve is downward sloping because of the consumer's preference for diversity. The consumer's budget constraint is bowed in toward the origin. When the consumer optimizes, the marginal rate of substitution of leisure for consumption equals the real wage rate.
Which of the following statements is correct? The consumer's indifference curves are concave. An indifference curve is downward sloping because of the consumer's preference for diversity. The consumer's budget constraint is bowed in toward the origin. When the consumer optimizes, the marginal rate of substitution of leisure for consumption equals the real wage rate.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 11SQ
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![Which of the following statements is correct?
The consumer's indifference curves are concave.
An indifference curve is downward sloping because of the consumer's preference for diversity.
The consumer's budget constraint is bowed in toward the origin.
When the consumer optimizes, the marginal rate of substitution of leisure for consumption equals the real wage rate.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e0fa368-4516-4367-b513-389a24c026ed%2F1e68613a-5ee6-4ce0-ad38-42a729a5b79f%2F4q8gic_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following statements is correct?
The consumer's indifference curves are concave.
An indifference curve is downward sloping because of the consumer's preference for diversity.
The consumer's budget constraint is bowed in toward the origin.
When the consumer optimizes, the marginal rate of substitution of leisure for consumption equals the real wage rate.
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