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.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
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:

  1. A) the same                                     B) Sam’s MRS will be greater.
  2. C) John’s MRS will be greater.      D) we cannot tell.
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