The "marginal rate of substitution" between two goods is measured by:
A) the ratio of the market prices of the two goods.
B) the number of units of a good consumed divided by the market price of the other good.
C) the number of units of one good a consumer would give up to consume one more unit of another good, while holding total utility constant.
D) the consumer's budget constraint divided by the price of each good.
C
You might also like to view...
If the government-imposed price of corn is greater than the market price,
a. the quantity of corn supplied will exceed the quantity of corn demanded. b. the quantity of corn supplied will be less than the quantity of corn demanded. c. the demand curve for corn will shift to the right. d. the supply curve of corn will shift to the right.
In the long run
a. all inputs are fixed. b. all inputs are variable. c. some inputs are fixed. d. production levels never change.