Figure 21-6

-Refer to Figure 21-6.Assume that the consumer depicted in the figure has an income of $20 to spend entirely on yogurt and granola bars.The price of a tub of yogurt is $2,and the price of a pack of granola bars is $4.This consumer will choose a consumption bundle where the marginal rate of substitution is equal to which of the following
A)1/3
B)1/2
C)2/3

Question

Figure 21-6
 
-Refer to Figure 21-6.Assume that the consumer depicted in the figure has an income of $20 to spend entirely on yogurt and granola bars.The price of a tub of yogurt is $2,and the price of a pack of granola bars is $4.This consumer will choose a consumption bundle where the marginal rate of substitution is equal to which of the following
A)1/3 
B)1/2 
C)2/3

Quizplus · Accepted Answer

The consumer will choose a consumption bundle where the marginal rate of substitution (MRS) is equal to the price ratio of the two goods. The price of yogurt is $2 and the price of granola bars is $4, so the price ratio is 2/4 = 1/2.

Figure 21-6 -Refer to Figure 21-6.Assume That the Consumer Depicted in the Consumer