Suppose a Consumer's MRS Is Given by the Formula MRS_PT

question 25

Multiple Choice

Suppose a consumer's MRS is given by the formula MRS_PT = T/P,where P stands for the number of pieces of pizza and T stands for the number of tacos.Starting at 12 tacos and 4 pizzas,the consumer must receive:

• A) 3 tacos to compensate them for the loss of one piece of pizza.
• B) 3 pieces of pizza to compensate them for the loss of one taco.
• C) 1/3 taco to compensate them for the loss of one piece of pizza.
• D) 1/3 piece of pizza to compensate them for the loss of one taco.

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Definitions:

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