Question : Statement 1: The slope of the budget line represents the relative price of two goods.

Statement 2: The consumer achieves equilibrium when the marginal rate of substitution is equal to the relative price of the goods.

Option 1: Statement 1 is true, and statement 2 is false.

Option 2: Statement 1 is false, and statement 2 is true.

Option 3: Both statement 1 and statement 2 are true.

Option 4: Both statement 1 and statement 2 are false.

Question : Statement 1: The consumer achieves equilibrium when the marginal utility per dollar spent is equal for all goods.

Statement 2: At equilibrium, the consumer maximizes their total utility within the constraints of their budget.

Question : Statement 1: Consumer equilibrium can occur when the marginal rate of substitution is equal to the relative price of goods.

Statement 2: The marginal rate of substitution measures the rate at which a consumer is willing to substitute one good for another while

Question : Statement 1: A consumer achieves equilibrium by consuming equal quantities of all goods.

Statement 2: The concept of consumer equilibrium assumes that the consumer's goal is to maximize their total utility.

Question : Assertion: The slope of the budget line represents the relative price of two goods in the consumer's consumption bundle.

Reason: The consumer chooses a consumption bundle where the marginal rate of substitution equals the relative price of the goods.

Question : Statement 1: The consumer's equilibrium is achieved when the budget line is steeper than the highest attainable indifference curve.

Statement 2: The consumer's equilibrium is determined by the intersection of the budget line and the highest attainable