Suppose a consumer consumes two goods, X and Y. The relative price of the two goods equals the
a. marginal rate of substitution.
b. rate at which the consumer will give up X to gain Y while maintaining the same level of utility.
c. slope of the budget constraint.
d. All of the above are correct.
c
Economics
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One explanation for the existence of wage differentials in the long run is that
a. not every job is equally appealing to all workers b. all labor markets are perfectly competitive c. workers are equally able to perform every job d. the number of workers varies by market e. population trends influence the demand for labor
Economics
In the short run, the aggregate supply curve:
A. is perfectly inelastic. B. slopes upward. C. is perfectly elastic. D. slopes downward.
Economics