Bundle L contains 10 units of good X and 20 units of good Y. Bundle M contains 8 units of good X and 21 units of good Y. The consumer is indifferent between bundle L and bundle M. Assume that the consumer's preferences satisfy the four properties of indifference curves. Which of the following correctly expresses the marginal rate of substitution of good X for good Y between these two points?
a. The consumer will give up 1 unit of good X to gain 2 units of good Y.
b. The consumer will give up 2 units of good X to gain 1 unit of good Y.
c. The price of good X is twice as large as the price of good Y.
d. The price of good X is half as large as the price of good Y.
b
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A) lower; increase aggregate demand B) raise; increase aggregate supply C) lower; increase aggregate supply D) raise; decrease aggregate supply E) raise; increase aggregate demand
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A) a marginal social cost curve. B) a marginal social benefit curve. C) an opportunity cost curve. D) a consumer surplus curve.
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A. $38.89. B. $10. C. $45. D. $0.
Assuming a perfectly competitive market implies that households do not need knowledge of qualities and prices of everything available in the market.
Answer the following statement true (T) or false (F)