Siobhan has certain preferences for food and clothing. The price of food is €20 per pound...

Siobhan has certain preferences for food and clothing. The price of food is €20 per pound and the price of clothing is €10 per garment. At these prices, Siobhan consumes 5 pounds of food and 10 garments per month. These are the only things that Siobhan buys. Her preferences satisfy all the standard assumptions of consumer choice theory.

What is Siobhan's marginal rate of substitution at the bundle that she chooses? Your answer should be in the form of the number of garments that Siobhan is willing to give up for an extra pound of food.

	A.	2
	B.	1
	C.	10
	D.	None of the above

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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