Multiple Choice
If the marginal rate of substitution of pepsi for pizza is six litres of pepsi for one pizza slice, and the price of pepsi is $1 per litre and the price of pizza is $3 per slice, then this consumer should:
A) trade pepsi for pizza and end up on a higher indifference curve
B) trade pizza for pepsi and end up on a higher indifference curve
C) do nothing as they are already maximizing utility
D) we cannot say without more information
Correct Answer:

Verified
Correct Answer:
Verified
Q101: Graph 22-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 22-4
Q102: It is plausible for the labour supply
Q103: Graph 22-8 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 22-8
Q104: A budget constraint:<br>A)represents the bundles of consumption
Q105: If a good is a perfect substitute,
Q107: Graph 22-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 22-9
Q108: Which of the following is a property
Q109: Graph 22-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 22-3
Q110: Graph 22-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 22-9
Q111: Graph 22-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 22-5