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Consider Two Goods: Peanuts and Crackers

Question 418

Multiple Choice

Consider two goods: peanuts and crackers. The slope of the consumer's budget constraint is measured by the


A) consumer's income divided by the price of crackers.
B) relative price of peanuts and crackers.
C) consumer's marginal rate of substitution.
D) number of peanuts purchased divided by the number of crackers purchased.

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