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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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