If the Price of a Good Y Falls, Then the Marginal

question 57

Multiple Choice

If the price of a good Y falls, then the marginal rate of substitution between X and Y

• A)increases.
• B)decreases.
• C)remains the same.
• D)depends on whether X and Y are normal or inferior goods, and cannot tell without that information.

---

Definitions:

Independent Variables

Variables in statistical or mathematical modeling that are manipulated or changed to assess their effect on dependent variables.

Dependent Variables

Variables in an experiment or study whose changes depend on the effects of other variables (independent variables).

Exponential Smoothing

A weighted moving average forecasting technique in which data points are weighted by an exponential function.

Simple Moving Average

A statistical method used to analyze data points by creating a series of averages of different subsets of the full data set.