Multiple Choice
Suppose an individual's MRS (of steak for beer) is 2:1.That is,at the current consumption choices he or she is willing to give up 2 beers to get an extra steak.Suppose also that the price of a steak is $1 and a beer is $4.Then in order to increase utility the individual should:
A) buy more steak and less beer.
B) buy more beer and less steak.
C) continue with current consumption plans.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: An increase in an individual's income without
Q4: If the price of x falls,the budget
Q5: Suppose that an individual has a constant
Q6: "If an individual is to maximize the
Q7: assume that a person has a quasi-linear
Q8: If an individual's utility function for coffee
Q10: If an individual's indifference curve map does
Q12: The slope of the budget constraint line
Q14: If utility is given by <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5166/.jpg"
Q17: Suppose that at current consumption levels an