Author Question: The MRS of the indifference curves in the above figure A) equals 1/2. B) equals 2. C) changes ... (Read 71 times)

wenmo · **on:** Jun 29, 2018

The MRS of the indifference curves in the above figure

A) equals 1/2.
B) equals 2.
C) changes when moving along any one of the curves.
D) is constant along a particular indifference curve, but changes from one indifference curve to the next.

Question 2

Suppose that Richard has just told you that he would not pay more than 100 dollars for one of his favorite baseball cards. You offer to give him 110 dollars for his card and he refuses. What consumer choice theory or effect explains this result?

A) the endowment effect
B) bounded rationality
C) bounded self-interest
D) bounded will power