Suppose that 2 units of X and 8 units of Y give a consumer the same satisfaction as 4 units of X and 2 units of Y. Then
A. the marginal rate of substitution of Y for X is 3.
B. the consumer is willing to give up 1 unit of Y to obtain 3 more units of X.
C. the consumer is willing to give up 3 units of Y to obtain 1 more unit of X.
D. both a and c
E. both b and c
Answer: D
Economics
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Refer to Figure 2-4. Unemployment could cause this economy to produce at which point(s)?
a. Q, S
b. Q, S, T
c. R, U
d. T
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Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store it must
a. Decrease the prices on the goods sold in the store b. Decrease the parking rates c. All of the above d. None of the above
Economics