Rates of substitution are determined by:
A) the consumer's income.
B) the consumer's preferences.
C) the number of available consumption bundles.
D) the prices of different goods.

Question

Quizplus · Accepted Answer

Rates of substitution are determined by the consumer's preferences, as they reflect the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility.

Rates of Substitution Are Determined By