Lisa has a constant MRS of tea for coffee 3/4 (she is willing to give up at most 3 cups of coffee to get 4 cups of tea) then, if tea and coffee have the same price, she will: Buy only tea We cannot say anything about her market behavior. Buy only coffee Spend his or her income equally on coffee and tea Drink tea 3/4 of the time
Lisa has a constant MRS of tea for coffee 3/4 (she is willing to give up at most 3 cups of coffee to get 4 cups of tea) then, if tea and coffee have the same price, she will: Buy only tea We cannot say anything about her market behavior. Buy only coffee Spend his or her income equally on coffee and tea Drink tea 3/4 of the time
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 3CQ: Recent research confirms that the demand for cigarettes is not only inelastic, but it also indicates...
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Lisa has a constant MRS of tea for coffee 3/4 (she is willing to give up at most 3 cups of coffee to get 4 cups of tea) then, if tea and coffee have the same price, she will:
Buy only tea
We cannot say anything about her market behavior.
Buy only coffee
Spend his or her income equally on coffee and tea
Drink tea 3/4 of the time
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