If Fred's marginal rate of substitution of salad for pizza equals 5, then

A) he would give up 5 pizzas to get the next salad.
B) he would give up 5 salads to get the next pizza.
C) he will eat five times as much pizza as salad.
D) he will eat five times as much salad as pizza.

B

Economics

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Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium

What will be an ideal response?

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An example of a quantity restriction is

A) the minimum wage. B) an import quota. C) rent controls. D) price supports in agriculture.

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