Suppose a Consumer with an Income of $100 Who Is

question 156

Multiple Choice

Suppose a consumer with an income of $100 who is faced with P_x = 1 and P_y = 1/2.What is the market rate of substitution between good X (horizontal axis) and good Y (vertical axis) ?

• A)0.50.
• B)-1.0.
• C)-2.0.
• D)-4.0.

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Definitions:

Safety

The state of being safe from or not exposed to danger, risk, or harm.

Social

Relating to society, or the organization and functioning of human communities.

Maslow Hierarchy

A theory in psychology proposed by Abraham Maslow, depicting a five-tier model of human needs, arranged in a pyramid with basic needs at the bottom and self-actualization at the top.

Psychosocial Influences

The impact of societal and interpersonal factors on an individual's thoughts, feelings, and behaviors, particularly in the context of consumer behavior.