If a consumer's marginal rate of substitution is greater than the relative price of the good measured on the x -axis, which of the following situations arises?
The consumer

Question

If a consumer's marginal rate of substitution is greater than the relative price of the good measured on the  x -axis, which of the following situations arises? 
 The consumer

Answer

is at her best affordable point.

Answer

moves to a lower indifference curve to attain her best affordable point.

Answer

needs more income to reach her best affordable point.

Answer

faces a substitution effect but not an income effect.

Answer

moves to a higher indifference curve to attain her best affordable point.

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If a consumer's marginal rate of substitution is greater than the relative price...

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