Multiple Choice
A consumer buys 12 units of entertainment and 84 units of "all other things." The consumer's income elasticity of demand is greater than 1 for entertainment and less than 1 for all other things.If income increases by 10%,then the consumer's marginal rate of substitution at the utility-maximizing market bundle will:
A) increase.
B) decrease.
C) be equal to 1.
D) remain constant.
E) There is insufficient information to answer the question.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Suppose Al is currently consuming five movies
Q2: At equilibrium,the marginal rate of substitution describes:<br>A)
Q3: The accompanying table describes Ben's preferences over
Q5: Consider the following budget constraint.Dennis spends all
Q6: Which of the following does not affect
Q7: John spends his budget on food and
Q8: The marginal rate of substitution of X
Q9: Betty is investing in the stock market.She
Q10: The following diagram represents the demand for
Q11: Susan is investing in the stock market.She