Question

Mara thinks good x and good y are perfectly substitutable in a 7:19 ratio. The market...

Mara thinks good x and good y are perfectly substitutable in a 7:19 ratio. The market prices are ?? = 4 and ?? = 3. Which of the following is true?

A. Mara’s indifference curves are steeper than her budget line

B. Mara’s indifference curves are flatter than her budget line

C. Mara’s indifference curves have the same slope as her budget line

D. Mara’s indifference curves are parallel to her kink line

E. None of the above

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