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For questions 25 and 26, assume that Good X is measured on the x-axis and Good Y is measured on the y-axis. Question 25 (1.25

For questions 25 and 26, assume that Good X is measured on the x-axis and Good Y is measured on the y-axis.

Question 25 (1.25 points)

If the price ratio of two goods is 1.5 and the marginal rate of substitution is 2, then the market values ________________ more than the consumer does, and the consumer values ______________ more than the market does.

Question 25 options:

a)

Good X; Good Y

b)

Good Y; Good X

c)

Cannot be determined

Question 26 (1.25 points)

In question 25, the consumer ought to buy less of _________________ and more of _____________________.

Question 26 options:

a)

Good X; Good Y

b)

Good Y; Good X

c)

Cannot be determined

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