If the marginal propensity to consume is 0.6, the marginal propensity to save is

If a severe drought causes the harvest of corn to be 10 percent less than anticipated, it will cause a large increase in the price of corn if

A) corn is scarce. B) the demand for corn is highly elastic. C) the demand for corn is highly inelastic. D) the supply of corn is highly elastic. E) the supply of corn is highly inelastic.

The marginal rate of substitution

A) is minus the slope of the indifference curve. B) can be computed by measuring the curvature of the indifference curve. C) cannot be deduced from the properties of the indifference curve. D) can only be computed if we know the prices of all goods.