Which of the following statements are correct regarding the theory of consumer behavior?
- The indifference curve represents a set of consumption bundles that provide the consumer with the same level of satisfaction.
- The marginal rate of substitution is the slope of the indifference curve.
- The budget constraint determines the consumer's optimal choice by restricting the set of feasible consumption bundles.
- The consumer always chooses the bundle that maximizes utility, regardless of the budget constraint.
1
1 and 2
2
2 and 3
3
1, 2 and 3
4
Only 4