If a good is a perfect substitute, then the MRS will be constant no matter how much of any one good the consumer possesses.
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Q34: If the budget constraint crosses an indifference
Q35: An increase in income will cause the
Q36: The goal of a consumer can be
Q37: The income effect is the change in
Q38: Giffen goods are characterised by upward sloping
Q40: The optimal level of consumption occurs where
Q41: The indifference curves of perfect substitutes are:
A)straight
Q42: With respect to the utility of the
Q43: When income increases, a budget constraint will:
A)shift
Q44: Graph 22-1
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