Suppose that 2 units of X and 8 units of Y give a consumer the same satisfaction as 4 units of X and 2 units of Y.Then
A)the consumer is willing to give up 3 units of Y to obtain 1 more unit of X.
B)the consumer is willing to give up 1 unit of Y to obtain 3 more units of X.
C)the marginal rate of substitution of Y for X is 3.
D)both a and c
E)both b and c

Question

Quizplus · Accepted Answer

The consumer is willing to give up 6 units of Y (from 8 to 2) to obtain 2 more units of X (from 2 to 4), which means the consumer is willing to give up 3 units of Y for 1 more unit of X, indicating the marginal rate of substitution of Y for X is 3.

Suppose That 2 Units of X and 8 Units of Y