Figure 21-19 -Refer to Figure 21-19. Assume That the Consumer Depicted in Consumer

question 363

Multiple Choice

Figure 21-19
-Refer to Figure 21-19. Assume that the consumer depicted in the figure has an income of $20. The price of Skittles is $2 and the price of M&M's is $4. The consumer will choose a consumption bundle where the marginal rate of substitution is

• A)2.
• B)2/3.
• C)1/2.
• D)1/3.

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Definitions:

Truth In Lending Act

A United States federal statute aimed at fostering informed consumer credit utilization through mandating the disclosure of its terms and expenses.

Extending Credit

The act of granting a customer the ability to purchase goods or services now and pay for them at a later date, based on trust that payment will be made in the future.

Consumer Credit

Financing extended to consumers to allow them to purchase goods and services and repay the money over time.

Agricultural Purposes

Activities related to the cultivation of land, raising crops, and feeding, breeding, and managing livestock.