120 200 80-> P coffee U₁ U₁₁ Qcoffee 100% 200 A B $1.00 $0.50 F Qcoffee 40 80

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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what is the marginal rate of substitution when the price of coffee is $1.00 per ounce? the prof said the answer is -2.  

120
200
80->
P coffee
U₁
U₁₁
Qcoffee
100%
200
A
B
$1.00
$0.50
F
Qcoffee
40
80
Transcribed Image Text:120 200 80-> P coffee U₁ U₁₁ Qcoffee 100% 200 A B $1.00 $0.50 F Qcoffee 40 80
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