Two Goods in an Individual's Consumption Bundle Are Perfect Substitutes

question 78

Multiple Choice

Two goods in an individual's consumption bundle are perfect substitutes.For a given amount of income,the individual's optimal consumption bundle will contain:

• A)exactly 50% of each of the two goods.
• B)only the good with the lower price.
• C)only the good with the higher price.
• D)all of the good on the horizontal axis.

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Definitions:

Personality Trait

Enduring characteristics or tendencies that influence an individual's behavior across different situations.

Extraversion

A personality trait characterized by outgoingness, high levels of energy, and a preference for social interaction.

Average Life Expectancy

The average number of years that a person or animal is expected to live, based on statistical averages for a particular population.

Identity Confusion

A state in which an individual experiences uncertainty, conflict, or disorder regarding their personal identity or role in society.