Suppose that an individual has a constant MRS of shoes for ...

[cherise1989]

Suppose that an individual has a constant MRS of shoes for sneakers of 4:3 (that is, he or she is always willing to give up 3 pairs of sneakers to get 4 pairs of shoes). Then, if sneakers and shoes are equally costly, he or she will:
 a. buy only sneakers.
  b. buy only shoes.
  c. spend his or her income equally on sneakers and shoes.
  d. wear sneakers only 3/4 of the time.

Question 2

An experience good is one that:
 a. Only an expert can use
  b. Has undetectable quality when purchased
  c. Can be readily experienced simply by touching or tasting
  d. Improves with age, like a fine wine
  e. All of the above

[dawsa925]

Answer to Question 1

a

Answer to Question 2

b