Use the following to answer question:
Figure 4.10
-(Figure 4.10) _____ is willing to give up a lot guitars for a small number of video games, and _____ is willing to give up a lot of video games for a small number of guitars.
A) John; Paul
B) Paul; John
C) Paul; Paul
D) John; John

Question

Use the following to answer question:
Figure 4.10 
-(Figure 4.10) _____ is willing to give up a lot guitars for a small number of video games, and _____ is willing to give up a lot of video games for a small number of guitars.
A) John; Paul 
B) Paul; John 
C) Paul; Paul 
D) John; John

Quizplus · Accepted Answer

The figure shows an inverse relationship between the number of guitars and video games that John and Paul are willing to trade. As the price of guitars increases (moving to the left on the horizontal axis), John is willing to trade fewer and fewer guitars for video games, while Paul is willing to trade more and more video games for guitars. Therefore, Paul is willing to give up a lot of video games for a small number of guitars, and John is willing to give up a lot of guitars for a small number of video games. This describes choice B, where Paul is the one who values guitars more highly and John is the one who values video games more highly.

Use the Following to Answer Question