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A Constant Marginal Rate of Substitution Between Two Goods Implies

Question 15

Multiple Choice

A constant marginal rate of substitution between two goods implies


A) the goods are perfect complements.
B) the goods are substitutes but not perfect substitutes.
C) the goods are both inferior goods.
D) one good is a normal good and one good is an inferior good.
E) the goods are perfect substitutes.

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