Jodie has indifference curves for CDs and colas, with CDs on the vertical axis. The flatter her indifference curves are, the
A) smaller her average rate of substitution.
B) larger her average rate of substitution.
C) smaller her marginal rate of substitution.
D) larger her marginal rate of substitution.
C
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A decrease in the nominal wage will cause the aggregate supply curve to
A. shift outward. . B. shift inward. C. become flatter D. become steeper. .
In the above figure, the firm is a monopolistically competitive firm. In the long run, its economic profit will be
A) zero. B) between zero and $50 per day. C) greater than $50 per day. D) some amount that cannot be determined without more information.
If the price of beef jerky rises, the substitution effect due to the price change will cause
A) an increase in the demand for hot sauce, a complement for beef jerky. B) a decrease in the quantity of beef jerky demanded. C) an increase in the quantity of beef jerky demanded. D) an increase in the demand for beef jerky.
A horizontal demand curve is perfectly elastic because a change in price will not induce a change in quantity demanded
a. True b. False Indicate whether the statement is true or false