Card 14 / 59: If an individual's budget is represented by M = 90 for two products (x,y), what do we know about the budget constraint?
A)
It must be continuous.
B)
It must have constant slope.
C)
There can be no price of zero.
D)
There will exist some marginal rate of substitution.
Answer:
D) There will exist some marginal rate of substitution.
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