According to the Relative Price Rule, the Optimal Consumption Bundle

question 40

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 than
• D) total; lower than

Develop the ability to simplify complex algebraic expressions involving radicals by rationalizing the numerator or denominator.

Understand the different types of markets and their functions within the financial system.

Differentiate between primary and secondary markets.

Recognize the role and significance of financial intermediaries in the financial system.

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