QUESTIONS 33 THROUGH 44 RELATE TO ECONOMICS

34. Partial information on three baskets containing goods A and B is given in the table below. The

marginal rate of substitution of B for A, (MRS

BA

), at Basket 2 is also provided.

Basket

Units of A

Units of B

MRS

BA

1

?

30

2

50

35

4.0

3

40

40

A consumer’s indifference curves are strictly convex and he claims that he is indifferent between

Baskets 2 and 3. If he is also indifferent between Baskets 1 and 3, the number of units of A in

basket 1 is most likely:

A. equal to 60.

B. less than 60.

C. greater than 60.