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(Figure: Cereal and Pancakes I) the Market Prices for Cereal

Question 24

Multiple Choice

(Figure: Cereal and Pancakes I) The market prices for cereal and pancakes are $2 and $1, respectively. Pareto efficiency requires that the marginal rate of substitution of cereal for pancakes equal _____ for Elaina and _____ for Jose. (Figure: Cereal and Pancakes I)  The market prices for cereal and pancakes are $2 and $1, respectively. Pareto efficiency requires that the marginal rate of substitution of cereal for pancakes equal _____ for Elaina and _____ for Jose.   A)  2; 1/2 B)  1/2; 2 C)  2; 2 D)  2; 1


A) 2; 1/2
B) 1/2; 2
C) 2; 2
D) 2; 1

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