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Author Question: Individuals derive utility from picnics, p, and kayak trips, k. Assuming that an individual's ... (Read 20 times)

crobinson2013

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Individuals derive utility from picnics, p, and kayak trips, k. Assuming that an individual's utility is U(p,k) = k0.5p0.5 and income is 100, what is the marginal rate of substitution (MRS) between picnics and kayak trips?
 
  A) MRS = 1.
  B) MRS = -1.
  C) MRS = -1/2
  D) There is no substitution because picnics and kayak trips are perfect complements.

Question 2

People view alcohol and marijuana as perfect substitutes. This means that
 
  A) individuals will consume either alcohol or marijuana, but not both, regardless of price.
  B) as the price of alcohol decreases, marijuana use decreases.
  C) the marginal utility for alcohol and marijuana is constant.
  D) Both B and C.


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Ddddd

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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