Question
Asked Sep 28, 2019
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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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The rate at which the consumer given up a particular amount of one goods for maintaining same level of utility from another ...

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