Friday, 8 April 2011

If a consumer’s marginal rate of substitution equals 2 eggs for 1 hamburger then:

► The consumer’s indifference curve must be positively sloped.
► The consumer’s indifference curve must be convex with respect to
the origin of the graph.
► The ratio of the consumer’s marginal utility of 1 egg to that
of 1 hamburger must equal ½.
► All of the given options.

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