Multiple Choice
Figure: Marginal Rate of Substitution 
Refer to the figure. What is the marginal rate of substitution (MRS) between Bundle A and Bundle B?
A) 4.5; the consumer is willing to trade 4.5 movie downloads for one music download.
B) three; the consumer is willing to give up three movie downloads for an additional music download.
C) 1.5; the consumer will buy 1.5 times as many music downloads as movie downloads.
D) one; the consumer faces a one-to-one trade-off.
Correct Answer:
Verified
Correct Answer:
Verified
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