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.

---

Definitions:

Shares

Units of ownership in a company, representing a portion of the corporation's capital, entitling the shareholder to a part of the profits.

Public Corporation

A company whose shares are publicly traded on a stock exchange, subject to regulatory scrutiny.

Proprietorship

A form of business organization owned by a single person who is responsible for its operations and entitled to its profits.

Barber Shop

A place of business that offers men hair cutting, grooming, and often, shaving services.