Consider Four Survivors on an Island

question 121

Multiple Choice

Consider four survivors on an island. Which of the following pairs of survivors has a double-coincidence of wants?

• A) Rupert with Amber, and Rob with Tom
• B) Amber with Tom
• C) Rupert with Rob
• D) None of the above are correct.

---

Definitions:

Substitution

The economic principle stating that as prices rise or consumer preferences change, individuals substitute one good or service for another.

Utility Function

A mathematical representation of how different combinations of goods or services generate levels of happiness or satisfaction to the consumer.

Utility

A measure of the satisfaction or happiness that a person derives from consuming goods and services.

Marginal Rate

Refers to the rate at which one quantity changes with respect to a change in another, commonly used in economics to describe the marginal rate of substitution or marginal rate of transformation.