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Samara's Income Is $30 a Month and She Spends All

Question 353

Multiple Choice

Samara's income is $30 a month and she spends all of it on music downloads and gasoline. The price of a music download is $3 and the price of a gallon of gasoline is $3. At Samara's best affordable point, her marginal rate of substitution is ________ gallon of gasoline per music download.


A) 0.5
B) 1
C) 1.5
D) More information is needed to determine the marginal rate of substitution.

Correct Answer:

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