If Jill's MRS of popcorn for candy is 2 (popcorn is on the horizontal axis), Jill would willingly give up:
A) 2, but no more than 2, units of popcorn for an additional unit of candy.
B) 2, but no more than 2, units of candy for an additional unit of popcorn.
C) 1, but no more than 1, unit of candy for an additional 2 units of popcorn.
D) 2, but no more than 2, units of popcorn for an additional 2 units of candy.

Question

Quizplus · Accepted Answer

MRS is the maximum amount of one good a consumer is willing to give up for an additional unit of another good while remaining equally satisfied. In this case, if Jill's MRS of popcorn for candy is 2, she would be willing to give up 2 units of popcorn for an additional unit of candy. Therefore, the correct answer is B - Jill would be willing to give up 2 units of popcorn for an additional unit of candy, but no more than 2 units of candy for an additional unit of popcorn.

If Jill's MRS of Popcorn for Candy Is 2 (Popcorn