Suppose Food Is on the Horizontal Axis and All Other

question 69

Multiple Choice

Suppose food is on the horizontal axis and all other goods on the vertical axis.Your budget allowance is $200,the market price of food is $5,and the market price of all other goods is $20.You are expending your total budget and the marginal rate of substitution at your present consumption bundle is 0.1 so to maximize utility you should consume:

• A)more food and less of all other goods.
• B)less food and more of all other goods.
• C)less of both food and all other goods.
• D)more of both food and all other goods.

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Definitions:

Northern Plains

A vast geographical area in the United States known for its flat terrain, grasslands, and significant historical and environmental importance.

Trade

The process of purchasing, selling, or trading goods and services among individuals or nations.

Europeans

The inhabitants of Europe or individuals of European descent.

Horses

Domesticated mammals known for their speed, strength, and ability to be ridden, used historically for transportation, work, and military purposes.