JAMB Economics 2011 Objective — Question 17
Question 17 of 49 from the Joint Admissions and Matriculation Board (JAMB) Economics 2011 Objective paper, with the correct answer and a full explanation.
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When a consumer is at equilibrium, the MRS is equal to the
- A. A. product of the two prices
- B. B. ratio of the two pricesCorrect
- C. C. difference of the two prices
- D. D. sum of the two prices
Explanation
The MRS, which is the slope of the indifference curve, will be equal to the slope of the budget line, i.e. the ratio of the two prices.
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