If You Are Willing to Give Up 5 Units of Good

question 197

Multiple Choice

If you are willing to give up 5 units of good Y (on the vertical axis) for 5 units of good X (on the horizontal axis) , and your level of satisfaction is unchanged, the marginal rate of substitution is:

• A) 0.5.
• B) 1.
• C) 2.
• D) 5.

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Definitions:

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