With respect to consuming food and shelter, two consumers face the same prices and both claim to be in equilibrium. We therefore know that
A) they both have the same marginal utility for food.
B) they both have the same marginal utility for shelter.
C) they both have the same MRS of food for shelter.
D) All of the above.
C
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A specialized rice grower sells rice in two markets, the United States and Japan, and the marginal cost the same in both markets. The price elasticity of demand in the United States is -2.0, and the price elasticity of demand in Japan is -1.5
If the grower practices multimarket price discrimination, which country's consumers will pay a higher price and by how much?
Which of the following could contribute to cost-push inflation?
a. Greater demand for exports b. Lower income taxes c. An increase in consumption demand d. Higher government spending e. Higher wage demands by trade unions
A perfectly inelastic supply curve is: a. upward sloping to the right
b. downward sloping to the left. c. horizontal. d. vertical.
The Federal Reserve can tightly control
a. cash in the hands of the public b. cash in the hands of the public and demand deposits c. demand deposits d. funds in savings accounts and checking accounts e. borrowing by the government