The marginal rate of substitution measures
A) the impact of product substitution.
B) the changes in marginal utility along the indifference curve.
C) the consumer's willingness to substitute one product for another so that total utility will remain unchanged.
D) the consumer's willingness to substitute one product for another so that marginal utility will remain unchanged.
Answer: C
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If cross-price elasticity of demand between two goods is positive, the two goods are:
A. substitutes. B. complements. C. normal. D. inferior.
In the above figure, as more ukuleles are produced, the opportunity cost in terms of guitars is
A) decreasing. B) increasing. C) constant. D) zero.
Which of the following varies along a given demand curve?
a. consumer preferences b. prices of substitutes c. prices of complements d. the price of the good itself e. income
Which of the following government programs provides recipients with unrestricted cash payments?
a. Temporary Assistance to Needy Families (TANF). b. Medicaid. c. The food stamp program (SNAP). d. Housing assistance programs.