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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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