Multiple Choice
Two goods in an individual's consumption bundle are perfect substitutes.For a given amount of income, the individual's optimal consumption bundle will be:
A) a bundle that is made up of exactly 50% of each of the two goods.
B) a bundle that is made up entirely of the good that has the lower price.
C) a bundle that is made up entirely of the good that has the higher price.
D) the bundle that contains all of the horizontal axis good.
Correct Answer:

Verified
Correct Answer:
Verified
Q7: Gehrig's utility from the consumption of mangoes
Q80: Figure: Consumer Equilibrium IV<br>(Figure: Consumer Equilibrium IV)
Q82: Ms.Stardoe gets utility from coffee and cream,
Q86: Scenario: e-Books and Sports Tickets Phillip has
Q87: Figure: The Consumption of Video Games and
Q88: Figure: Income and Substitution Effects <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1063/.jpg"
Q89: According to the relative price rule, the
Q90: Figure: Budget Lines for Oranges and Apples<br>
Q331: Decreases in the price of the good
Q368: Indifference curves that exhibit a diminishing marginal