In a television ad a lady appears who carries a liter of her favorite edible oil

Question

In a television ad a lady appears who carries a liter of her favorite edible oil (brand X) in the shopping cart and is approached by an individual who tries to convince her that another edible oil (brand Y) gives a better flavor to the food that the X; the individual offers a liter of oil And in exchange for the liter in the cart, but the lady does not accept the change. Expressing the behavior of the protagonist of the advertisement in terms of its marginal relation of substitution between both oils, we can ensure that:

a) The RMSXY <1.
b) The RMSXY> 1.
c) The RMSXY = 1.
d) Your RMSXY is growing

explain

Explanation / Answer

b) The RMSXY> 1.

Note that RMSXY> 1 implies that the lady is willing to sacrifice 1 unit of her favourite brand X if she is offered a bundle of brand Y that has more than 1 units of brand Y. Since she is rejecting the exchange of 1 unit of X with 1 unit of Y, it must be true that her rate of subtituting X for Y must be greater than 1.

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