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Suppose the consumer has Cobb Douglas preferences and is currently consuming a bundle that is just affordable (i.e, on the budget line). Further, at this

Suppose the consumer has Cobb Douglas preferences and is currently consuming a bundle that is just affordable (i.e, on the budget line). Further, at this bundle we have MRS=21=2 and 21=1. Which of the following statements is true? Question 2Select one: a. The consumer is consuming the optimal bundle. b. The consumer is consuming too much good 1. They could do better by consuming less of good 1 and more of good 2. c. The consumer is not spending their entire income. d. The consumer is consuming too much good 2. They could do better by consuming less of good 2 and more of good 1

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