Frank Buys Only Milk and Cereal, Both of Which Are

question 156

Multiple Choice

Frank buys only milk and cereal, both of which are normal goods, and he always maximizes his utility. Frank's boss cuts Frank's pay by $200 per month. What happens to Frank's marginal rate of substitution between milk and cereal?

• A) It fluctuates randomly.
• B) It decreases.
• C) It increases.
• D) It stays constant.

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Definitions:

Community Health Clinic

A local healthcare facility that provides primary medical care and preventive services to people in a community, often regardless of ability to pay.

Selective Serotonin Reuptake Inhibitor (SSRI)

A class of drugs used primarily to treat depression by increasing the amount of serotonin in the brain, thereby improving mood.

Antidepressant Medication

A class of drugs used primarily to treat depression, but also used for anxiety, pain, and certain other mental health conditions, by altering the balance of neurotransmitters in the brain.

Improvement

The process of making something better or more effective through corrective measures or enhancements.