Assertion (A): A consumer can be at his optimum at a point inside the budget line.
Reason (R): With monotonic preferences, more is always better.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A is false: inside the line some income is unspent, and spending it on more goods raises satisfaction.
R is true, and is exactly why a point inside cannot be the optimum.

Concept: No optimum inside the line
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsThe consumer's optimal choice

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Ten questions from Budget Line & Optimal Choice, at your own pace.

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Ten questions from Budget Line & Optimal Choice, at your own pace.

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Assertion (A): A consumer can be at his optimum at a point inside the budget line.Reason (R): With monotonic preferences, more is always better.

Explanation

Assertion (A): A consumer can be at his optimum at a point inside the budget line.
Reason (R): With monotonic preferences, more is always better.