Assume a Convex Utility Function with an Interior Solution in Which

question 16

Multiple Choice

Assume a convex utility function with an interior solution in which a consumer chooses some of each good.Which of the following is NOT represented by the slope of the budget constraint?

• A) marginal rate of substitution
• B) relative price of one good (drawn on horizontal axis)in terms of other good (drawn on vertical axis)
• C) relative price of one good (drawn on vertical axis)in terms of other good (drawn on horizontal axis)
• D) ratio of the marginal utilities

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Definitions:

Limiting Resources

Essential resources (such as food, water, and shelter) that are in short supply, limiting the growth, reproduction, or distribution of organisms.

Interspecific Competition

A form of competition between individuals of different species inhabiting the same ecological area.

Intraspecific Competition

Competition among members of the same species for resources such as food, space, and mates, which can influence population dynamics.

Unfavorable Environmental Factor

An external condition that negatively impacts the growth, reproduction, or survival of organisms, such as pollution or extreme temperature.