Antonin notices he is currently spending all of his money on a bundle (x1, x2) where his marginal rate of substitution is greater than the relative prices (p1/p2). Can Antonin reach a bundle on a higher indifference curve with his current income? Explain clearly and provide a graph with your response.

Antonin notices he is currently spending all of his money on a bundle (x1, x2) where his marginal rate of substitution is greater than the relative prices (p1/p2). Can Antonin reach a bundle on a higher indifference curve with his current income? Explain clearly and provide a graph with your response.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 2SQ

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