Devar Was Driving on Interstate 95 in Eastern Florida When

question 123

True/False

Devar was driving on Interstate 95 in eastern Florida when he noticed he was running low on gas. Devar was relieved when he found a gas station open at the next exit just 2 miles ahead. This is an example of the value place utility provides to a consumer.

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Definitions:

Marginal Rate Of Substitution

The rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility.

North American Free Trade Agreement

A trade agreement among the United States, Canada, and Mexico to reduce trade barriers and promote economic exchange.

Efficient Equilibrium

A state of balance in a market where resources are allocated in the most efficient way possible, with no room for welfare improvement without making someone else worse off.

Relative Price

The price of one good or service compared to another, usually indicating how much of one can be exchanged for the other.