Matthew said that he is exactly indiffferent between consuming four slices of pizza and one beer versus consuming three slices of pizza and two beers. He also said that he prefers a bundle consisting of one slice of pizza and three beers to either of the first two bundles. Do Matthew's preferences exhibit diminishing marginal rate of substitution?
Matthew said that he is exactly indiffferent between consuming four slices of pizza and one beer versus consuming three slices of pizza and two beers. He also said that he prefers a bundle consisting of one slice of pizza and three beers to either of the first two bundles. Do Matthew's preferences exhibit diminishing marginal rate of substitution?
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 1SQP
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Matthew said that he is exactly indiffferent between consuming four slices of pizza and one beer versus consuming three slices of pizza and two beers. He also said that he prefers a bundle consisting of one slice of pizza and three beers to either of the first two bundles. Do Matthew's preferences exhibit diminishing marginal rate of substitution?
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