Figure 3-1 Shows the Preferences of a Consumer Toward Reading

question 8

Multiple Choice

Figure 3-1 shows the preferences of a consumer toward reading books and watching movies.
-Refer to Figure 3-1.Given that the price of a book is $4 and a movie ticket costs $5,the consumer's marginal rate of substitution in equilibrium equals _____.

• A)1
• B)5/4
• C)4/5
• D)Cannot be determined without more information

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Definitions:

Control Chart

A graphical tool used in quality control processes to monitor changes and variations in a process over time.

Control Limits

Statistical boundaries set in process control that indicate the permissible range of variation for a process to remain in control.

Assignable Causes

Specific, identifiable factors that cause variation in a process or system, as opposed to random variation.

Type II Errors

A statistical error that occurs when a test fails to reject a false null hypothesis.