If X₁ is $20 Bills and X₂ is $100 Bills

question 29

Multiple Choice

If x₁ is $20 bills and x₂ is $100 bills, then:

• A)the utility function is x + 5z.
• B)indifference curves have many kinks.
• C)the marginal rate of substitution is 5.
• D)the marginal rate of substitution is 1/5.

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Definitions:

Hearing Loss

A decrease in the ability to perceive sounds, ranging from mild to profound, which may affect one or both ears.

Olfaction

The sense of smell, one of the five senses.

Olfactory Epithelium

A specialized epithelial tissue inside the nasal cavity responsible for detecting odors, comprised of olfactory receptors and supporting cells.

Nasal Cavity

The large air filled space above and behind the nose in the middle of the face, involved in breathing and olfaction.