Use the Following to Answer Questions

question 8

Multiple Choice

Use the following to answer questions:
Figure: Consumer Equilibrium I
The figure shows three of Owen's indifference curves for pizza and soda per week. Owen has $180 per month to spend on the two goods. The price of a pizza is $20, and the price of a soda is $1.50.
-(Figure: Consumer Equilibrium I) Look at the figure Consumer Equilibrium I. What is Owen's marginal rate of substitution of pizza for soda when he is consuming his optimal consumption bundle?

• A) 0.75
• B) 1.5
• C) 13.3
• D) 20

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Definitions:

Conclusion

A final judgment or decision reached after consideration.

Evidence

Information, facts, or data presented in support of an assertion, argument, or theory.

Premises

Statements or propositions that are assumed to be true and from which a conclusion is drawn in the process of reasoning.

Argument

A set of statements or reasons put forth to support a conclusion, often in the context of logic, debate, or philosophy.