Given the indifference curve shown to the right: Q 10- a. What is the marginal rate of substitution as you move from point C to point E? (enter your answer as a fraction and note that the minus sign has been added). 9- Q 8- S (20, 7) É (27, 6) b. Would you expect the absolute value of the MRS to be higher, lower, or the 7- same as you continue to substitute audio CDs for books? F (36, 5) G (47, 4) в (60, 3) 3- 2- IC 1- 0- 10 20 30 40 50 60 70 80 90 100 Audio CDs (per year) Reactic OCT 27 tv MacBook Air 08 F3 DII DD F1 F2 F4 F5 F6 F7 F8 F9 F10 F11 $ % & 1 2 4 6 7 * CO to Books (per year) %# 3
Given the indifference curve shown to the right: Q 10- a. What is the marginal rate of substitution as you move from point C to point E? (enter your answer as a fraction and note that the minus sign has been added). 9- Q 8- S (20, 7) É (27, 6) b. Would you expect the absolute value of the MRS to be higher, lower, or the 7- same as you continue to substitute audio CDs for books? F (36, 5) G (47, 4) в (60, 3) 3- 2- IC 1- 0- 10 20 30 40 50 60 70 80 90 100 Audio CDs (per year) Reactic OCT 27 tv MacBook Air 08 F3 DII DD F1 F2 F4 F5 F6 F7 F8 F9 F10 F11 $ % & 1 2 4 6 7 * CO to Books (per year) %# 3
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 3WNG
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