Candies Are on the Vertical Axis and Pretzels Are on the Horizontal

question 68

Multiple Choice

Candies are on the vertical axis and pretzels are on the horizontal axis.Both goods command a positive price in the market place.The indifference curves are shaped such that the marginal rate of substitution increases rather than decreases.At equilibrium,the consumer will:

• A)consume both pretzels and candy in the ratio of their prices.
• B)consume only pretzels or only candy.
• C)consume both pretzels and candy in the ratio of their marginal utilities.
• D)consume equal amounts of pretzels and candy.

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Definitions:

Homogeneity

The quality or state of being all the same or all of the same kind, often used to describe a population or group with minimal diversity.

Nutritional Needs

The essential nutrients required by the body for growth, maintenance, and proper functioning, including vitamins, minerals, carbohydrates, proteins, and fats.

Dietary Requirements

Specific nutritional or food needs an individual might have, often due to health issues, allergies, or personal and ethical beliefs.

Equality

The state of being equal, especially in status, rights, and opportunities.