Vinny consumes tacos and chicken wings. To keep his utility constant, he must consume more tacos if he consumes fewer chicken wings. This means that
A) Vinny's indifference curve for tacos and chicken wings must have a negative slope.
B) Vinny's marginal rate of substitution must be constant along his indifference curves for tacos and chicken wings.
C) Vinny's marginal utility from each good must be constant along his convex indifference curves for tacos and chicken wings.
D) the prices Vinny pays for tacos and chicken wings are always the same.
A
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Refer to Figure 15-3. What happens to the monopolist represented in the diagram in the long run?
A) It will be forced out of business by more efficient producers. B) It will raise its price at least until it breaks even. C) If the cost and demand curves remain the same, it will exit the market. D) The government will subsidize the monopoly to enable it to break even.
When we move along a given demand curve,
a. only price is held constant. b. income and price are held constant. c. all nonprice determinants of demand are held constant. d. all determinants of quantity demanded are held constant.
Answer the next question(s) based on the following supply and demand schedules in units per week for a product. PriceQuantity DemandedQuantity Supplied$601004005014034040180280302202202026016010300100The government's introduction of a guaranteed price floor of $10 will result in
A. a shortage of 200 units. B. an unstable market. C. a surplus of 200 units. D. no shortage or surplus.
As interest rates decrease, the:
A. Cost of current relative to future consumption increases B. Cost of current relative to future consumption decreases C. Cost of current consumption relative to future consumption remains the same D. Desire of many individuals to save increases