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-Rick's Income Is $54 a Week and He Spends All

Question 8

Multiple Choice

-Rick's income is $54 a week and he spends all of it on CDs and sandwiches. The price of a CD is $6 and the price of a sandwich is $3. The figure above illustrates Rick's preferences. At Rick's best affordable point, the marginal rate of substitution is A) 0.5 sandwiches per CD. B) 1 sandwich per CD. C) 1.5 sandwiches per CD. D) 2 sandwiches per CD.
-Rick's income is $54 a week and he spends all of it on CDs and sandwiches. The price of a CD is $6 and the price of a sandwich is $3. The figure above illustrates Rick's preferences. At Rick's best affordable point, the marginal rate of substitution is


A) 0.5 sandwiches per CD.
B) 1 sandwich per CD.
C) 1.5 sandwiches per CD.
D) 2 sandwiches per CD.

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