Two Goods in an Individual's Consumption Bundle Are Perfect Substitutes

question 78

Multiple Choice

Two goods in an individual's consumption bundle are perfect substitutes.For a given amount of income,the individual's optimal consumption bundle will contain:

• A)exactly 50% of each of the two goods.
• B)only the good with the lower price.
• C)only the good with the higher price.
• D)all of the good on the horizontal axis.

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Definitions:

Academic Achievement

The extent of a student's success in meeting short or long-term educational goals, often measured by grades, test scores, or degree completion.

Nutritional Quality

A measure of the nutrients in foods and drinks, considering aspects like vitamin and mineral content, fat and sugar levels, and overall health impact.

Flynn Effect

The observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in various parts of the world over the 20th century.

Standards of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a certain geographic area.