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A consumer's preferences over consumption bundles (x 1 ,x 2 ) are strictly monotonic and strictly convex.The consumer is indifferent between (4,6) and (5,4).At the
A consumer's preferences over consumption bundles (x1,x2) are strictly monotonic and strictly convex.The consumer is indifferent between (4,6) and (5,4).At the bundle (4,6), the absolute value |x2/x1| of the consumer's marginal rate of substitution of good 2 to good 1 is:
a.
Equal to 2.
b.
Strictly smaller than 1/2.
c.
None of the other answers.
d.
Strictly larger than 2.
e.
Equal to 1/2.
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