The Rate at Which a Consumer Is Willing to Exchange

question 44

Multiple Choice

The rate at which a consumer is willing to exchange one good for another, and maintain a constant level of satisfaction, is called the:

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

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Definitions:

Triple Bar

A symbol (≡) used in logic and mathematics to denote identity or equivalence between two statements.

Biconditional

A logical connection between two statements where both or neither of the statements are true, often expressed as "if and only if".

Conjunction

A logical operator that connects two statements and indicates that both statements are true simultaneously.

Negation

A logical operation that reverses the truth value of a proposition.