Use the Information Below to Answer the Following Questions

question 105

Multiple Choice

Use the information below to answer the following questions.
Fact 9.3.1
Marc has an income of $20 and spends it on two goods,root beer (measured on the vertical axis) and chips (measured on the horizontal axis) .The price of root beer is $1 a can.The price of chips is $0.50 a bag.Initially,Marc chooses to consume 10 cans of root beer and 20 bags of chips.Then the price of root beer rises to $1.50 per can and the price of chips falls to $0.25 a bag.
-Refer to Fact 9.3.1.Marc's initial marginal rate of substitution was

• A)not calculable with the information given.
• B)equal to 2 cans of root beer given up for each bag of chips gained.
• C)equal to 1 can of root beer given up for each bag of chips gained.
• D)equal to 10 cans of root beer given up for each bag of chips gained.
• E)equal to 1/2 can of root beer given up for each bag of chips gained.

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Definitions:

Sphenoid Bone

A butterfly-shaped bone at the base of the skull that forms part of the eye socket and the floor of the cranial cavity.

Foramen Ovale

An opening in the septum between the two upper chambers of the heart in a fetus, which closes soon after birth.

Zygomatic

Pertaining to the cheekbone or zygoma, a bone that forms the prominence of the cheek.

Maxillary

Pertaining to the maxilla or the upper jaw bone, which plays a key role in the formation of the upper dental arch and assists in forming the boundaries of three facial cavities: the roof of the mouth, the floor of the orbit, and the sides and floor of the nasal cavity.