John and Sam have the same income. The stadium sells hot dogs for $4 and popcorn bags for $3. They have different preferences; John likes popcorn much more then Sam. At their optimal bundles, John and Sam’s Marginal Rates of Substitution will be: A) the same B) Sam’s MRS will be greater. C) John’s MRS will be greater. D) we cannot tell.
John and Sam have the same income. The stadium sells hot dogs for $4 and popcorn bags for $3. They have different preferences; John likes popcorn much more then Sam. At their optimal bundles, John and Sam’s Marginal Rates of Substitution will be: A) the same B) Sam’s MRS will be greater. C) John’s MRS will be greater. D) we cannot tell.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 11SQ
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John and Sam have the same income. The stadium sells hot dogs for $4 and popcorn bags for $3. They have different preferences; John likes popcorn much more then Sam. At their optimal bundles, John and Sam’s Marginal Rates of Substitution will be:
- A) the same B) Sam’s MRS will be greater.
- C) John’s MRS will be greater. D) we cannot tell.
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