Irrespective of whether she is at her optimum, Jenna's valuation of coffee relative to orange juice can be measured by a. her marginal rate of substitution between coffee and orange juice. b. the price of coffee relative to the price of orange juice. c. the ratio of the quantity of coffee that she buys relative to the quantity of orange juice that she buys. d. the ratio of the quantity of coffee supplied in the market to the quantity of orange juice supplied in the market.

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Mohamed Schneider

20 September, 04:11

Irrespective of whether she is at her optimum, Jenna's valuation of coffee relative to orange juice can be measured by a. her marginal rate of substitution between coffee and orange juice. b. the price of coffee relative to the price of orange juice. c. the ratio of the quantity of coffee that she buys relative to the quantity of orange juice that she buys. d. the ratio of the quantity of coffee supplied in the market to the quantity of orange juice supplied in the market.

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Aimee Bullock · Answer 1

a. her marginal rate of substitution between coffee and orange juice.

Explanation:

According to the definition of marginal rate of sustitution and the exercise, the rate at which she is ready to substitute coffee over orange juice or vice versa determines her valuation of these goods.