If consumers buy only gasoline and food, at their best affordable choice the marginal rate of substitution between food and gasoline ________ the relative price of food and gasoline
A) must exceed
B) must be less than the
C) must equal
D) might exceed or be less than but not equal to
C
Economics
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If consumers spend a small proportion of their income on a good, the demand curve for the good will be: a. elastic
b. inelastic. c. perfectly inelastic. d. unit elastic.
Economics
In 1979, Fed Chair Paul Volcker
a. instituted an accommodative monetary policy to address adverse supply shocks. b. believed that inflation had not yet reached unacceptable levels. c. believed decreasing inflation would temporarily decrease output growth. d. All of the above are correct.
Economics