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A the Rate at Which a Consumer Is Able to Substitute

Question 51

Short Answer

A. The rate at which a consumer is able to substitute one good for another is determined by the ______. The rate at which a consumer is willing to substitute one good for another is given by the ______.
B. If a consumer is choosing a bundle of goods that maximizes utility subject to a budget constraint the ratio of ______ to ______ is the same for every good and the ______ equals the ______ ratio for every pair of goods.
C. A consumer's demand curve for a good shows the ______ choice of the good at each ______.

Correct Answer:

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A. price ratio; MRS
...

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