Given the information in Scenario 4.3, erasers and good b, are:

A) substitutes.
B) complements.
C) completely unrelated.
D) normal.
E) inferior.

A

Economics

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The marginal propensity to consume is defined as:

A) ?C/?Yd. B) ?S/?Yd. C) ?Yd/?C. D) ?Yd/?S.

Economics

You can drive to campus, take a bus, or walk. Driving costs you $1/mile in gas and maintenance, the bus costs $1 for unlimited distance, and walking is free but involves a disutility equivalent to $1/mile. If you live 2 miles from campus, and are a rational decision maker, what is your reservation price for a bus ticket?

A. $1 B. $2 C. $4 D. $0

Economics