price of bagels is_____dollars and the price of coffee is_____dollars.(b) Both Kylie and Kona make rational breakfast choices that maximize their respective utilities. Kylie's marginal rate of substitution is_____ and Kona's marginal rate of substitution is_____(c) If Kona were forced to consume Kylie's bundle and vice versa, then Kona's marginal rate of substitution would be______greater than", "less than", or "equal to")Kylie's marginal rate of substitution. **Kylie's & Kona's Breakfast Choice**The graph depicts Kylie and Kona's breakfast choices within a fixed budget of $9 allocated for bagels and coffee. The x-axis represents the quantity of coffee, while the y-axis represents the quantity of bagels.- **Koa's Choice** is marked by a red dot, indicating 1 coffee and 3 bagels.- **Kylie's Choice** is marked by a blue dot, indicating 3 coffees and 1 bagel.The line connecting these points illustrates the budget constraint, indicating various combinations of coffee and bagels that can be purchased with the budget.**Additional Information:**- There are text boxes to enter the price of bagels and coffee.- Below the graph are instructions for questions regarding rational breakfast choices and the price of bagels and coffee to fill out.This exercise encourages understanding budget constraints and decision-making based on maximizing utility.

A budget restriction is the total amount of goods you can purchase with the available funds, in…

Answered: price of bagels is_____ dollars and the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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price of bagels is_____ dollars and the price of coffee is_____dollars. (b) Both Kylie and Kona make rational breakfast choices that maximize their respective utilities. Kylie's marginal rate of substitution is_____ and Kona's marginal rate of substitution is_____ (c) If Kona were forced to consume Kylie's bundle and vice versa, then Kona's marginal rate of substitution would be______greater than", "less than", or "equal to") Kylie's marginal rate of substitution.

**Kylie's & Kona's Breakfast Choice**

The graph depicts Kylie and Kona's breakfast choices within a fixed budget of $9 allocated for bagels and coffee. The x-axis represents the quantity of coffee, while the y-axis represents the quantity of bagels.

- **Koa's Choice** is marked by a red dot, indicating 1 coffee and 3 bagels.
- **Kylie's Choice** is marked by a blue dot, indicating 3 coffees and 1 bagel.

The line connecting these points illustrates the budget constraint, indicating various combinations of coffee and bagels that can be purchased with the budget.

**Additional Information:**

- There are text boxes to enter the price of bagels and coffee.
- Below the graph are instructions for questions regarding rational breakfast choices and the price of bagels and coffee to fill out.

This exercise encourages understanding budget constraints and decision-making based on maximizing utility.

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