According to the Relative Price Rule, the Optimal Consumption Bundle

question 89

Multiple Choice

According to the relative price rule, the optimal consumption bundle between hot dogs and beer takes place when the ________ rate of substitution is their relative price.

• A)total; equal to
• B)marginal; equal to
• C)marginal; higher
• D)than total; lower than

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Definitions:

Stagnation

A state of inactivity or lack of development.

Pseudo-intimacy

A false sense of closeness or emotional connection, often superficial or deceptive.

Vital Participation

Actively engaging in life activities that are seen as necessary or significant to the well-being of the individual or community.

Stimulation

The action of encouraging interest or activity in something, often related to sensory or psychological engagement and motivation.