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.

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 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 : In the cardinal utility approach, consumer's equilibrium is achieved when:

Option 1: Total utility is maximized.

Option 2: Marginal utility is maximized.

Option 3: Marginal utility equals zero.

Option 4: Marginal utility per dollar spent is equal across all goods.

Question : In the cardinal utility approach, the consumer's equilibrium is achieved when:

Option 1: Total utility is maximized.

Option 2: Marginal utility is maximized.

Option 3: Marginal utility equals zero.

Option 4: Marginal utility per dollar spent is equal across all goods.

Question : In the cardinal utility approach, the consumer's equilibrium is achieved when:

Option 1: Total utility is maximized.

Option 2: Marginal utility is maximized.

Option 3: Marginal utility equals zero.

Option 4: Marginal utility per dollar spent is equal across all goods.