The price of coke is $1.50 (y axis); the price of burger is $4.50 (x axis). Suppose that Ahmed does not consider the goods as perfect complements (and that there is no corner solution and the indifference curves are differentiable). If Ahmed has chosen his optimal consumption bundle by purchasing coke and burger, his marginal rate of substitution will be: A 1 coke for each burger. В 1/3 coke for each burger. Indeterminate unless more information on Ahmed's marginal C utilities is provided. 3 cokes for each burger.
The price of coke is $1.50 (y axis); the price of burger is $4.50 (x axis). Suppose that Ahmed does not consider the goods as perfect complements (and that there is no corner solution and the indifference curves are differentiable). If Ahmed has chosen his optimal consumption bundle by purchasing coke and burger, his marginal rate of substitution will be: A 1 coke for each burger. В 1/3 coke for each burger. Indeterminate unless more information on Ahmed's marginal C utilities is provided. 3 cokes for each burger.
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 8P
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