The Rate at Which a Consumer Is Willing to Exchange

question 57

Multiple Choice

The rate at which a consumer is willing to exchange one good for another while maintaining a constant level of satisfaction is called the

• A)relative expenditure ratio.
• B)value of marginal product.
• C)marginal rate of substitution.
• D)relative price ratio.

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Definitions:

Quantity Demanded

The overall volume of a certain good or service that individuals are prepared and financially able to buy at a set price during a specified interval.

Price

The payment expected, demanded, or issued in compensation for something.

Demand Schedule

A diagram showing the volume of an item that shoppers intend and can afford to buy across a range of prices.

Income

The financial gain received by an individual or a business in exchange for providing a good or service or through investing capital.