The Price of X Is $20 and the Price of Y

question 48

Multiple Choice

The price of X is $20 and the price of Y is $40.


-Based on the above graph,at point B,

• A)if the consumer obtains one more unit of Y,½ unit of X must be foregone in order to keep utility unchanged.
• B)if the consumer obtains one more unit of X,two units of Y must be foregone in order to keep utility unchanged.
• C)the marginal rate of substitution is ½.
• D)both a and c
• E)all of the above

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Definitions:

Sensory Systems

Sensory systems are the parts of the nervous system that receive and interpret information from the environment through senses like sight, hearing, touch, taste, and smell.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often characterized by delusions, hallucinations, and cognitive issues.

Hallucination

A perception in the absence of external stimulus that has qualities of real perception; hallucinations are vivid, substantial, and located in external objective space.

Delusions of Persecution

False beliefs that one is being harassed, cheated, or persecuted, often found in paranoid schizophrenia.