LaToya sees honey and sugar as perfect substitutes. She is always willing to substitute 1 teaspoon of honey for 2 teaspoons of sugar. If honey is three times as expensive as sugar, LaToya will use:
A) only honey.
B) only sugar.
C) some honey and some sugar.
D) a lot of sugar and a little honey.

Question

Quizplus · Accepted Answer

LaToya sees honey and sugar as perfect substitutes and is willing to substitute 1 teaspoon of honey for 2 teaspoons of sugar. Since honey is three times as expensive as sugar, she will choose only sugar because it is cheaper to achieve the same level of satisfaction.

LaToya Sees Honey and Sugar as Perfect Substitutes