In an attempt to cling to his joyful college days, Jerry consumes only cold cereal (C) and hot "so good your knees buckle" soup (S) from down the street. Thanks to the law of diminishing returns, his marginal rate of substitution between the two is MRS=2C/S. [In this context, the MRS is the amount of cereal he must give up to stay indifferent if he is given an additional serving of soup. For example, if Jerry consumes 4 cereals and 2 soups, he is willing to give up 4 cereals (2*4/2) to get 1 additional soup.] Cereal costs $2 per serving (PC = 2), while soup costs Jerry $8 per serving (PS = 8).

1.6.

Are soup and cereal normal or inferior goods for Jerry?

		A.Both are normal
		B.Soup is normal, cereal is inferior
		C.Both are inferior
		D.Cereal is normal, soup is inferior

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