If Jill's MRS of popcorn for candy is 2 (popcorn is on the horizontal axis), Jill...
If Jill's MRS of popcorn for candy is 2 (popcorn is on the horizontal axis), Jill would willingly give up:
A) 2, but no more than 2, units of popcorn for an additional unit of candy.
B) 2, but no more than 2, units of candy for an additional unit of popcorn.
C) 1, but no more than 1, unit of candy for an additional 2 units of popcorn.
D) 2, but no more than 2, units of popcorn for an additional 2 units of candy.
Homework Answers
MRS of popcorn for candy represent the amount of candy consumer can exchange for one unit of popcorn.
So, if Jil's MRS of popcorn for candy is 2, jill would willingly give up 2, but not more than 2, units of candy for an additional unit of popcorn.
Answer: option (B).
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