Refer to the accompanying table. If the price of Good A is $1 and the price of Good B is $3, then the rational spending rule is satisfied when the consumer purchases ________ units of Good A and ________ units of Good B. UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. 4; 3
B. 4; 4
C. 3; 3
D. 3; 4
Answer: A
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The U.S. Census Bureau considers in-kind transfers (such as employer provided benefits) when measuring income
a. True b. False
There are several advantages that a market economy possesses. These do not include the fact that market economies:
A) tend to result in high living standards. B) tend to encourage greater economic growth. C) tend to prevent entrepreneurial activity that would result in large accumulations of wealth in the hands of a few people. D) none of the above is true
The price elasticity of demand between milk and soda is likely to be:
A. negative, because the goods are complements. B. positive, because the goods are complements. C. negative, because the goods are substitutes. D. positive, because the goods are substitutes.
“Pure monopoly guarantees economic profits.” Discuss whether this is a valid statement
What will be an ideal response?