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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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