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Thomas sandoval
on Nov 16, 2024

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Refer to Figure 21-8. What is the consumer's marginal rate of substitution as she moves from A to B?

A) 4
B) 2
C) 1
D) 0.5

Marginal Rate

The marginal rate typically refers to the rate at which the next dollar of taxable income is taxed.

Substitution

The economic principle that as the price of a good or service increases, consumers are likely to replace it with a cheaper alternative.

Consumer

An individual or group that purchases goods and services for personal use.

  • Implement the marginal rate of substitution (MRS) theory to examine and enhance decision-making in consumer behavior.
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KW
Kylie WhiteNov 21, 2024
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