Suppose that a consumer has $200 to spend on two goods: beer and pretzels. The price of beer is $6.00 and the price of pretzels is $3.00. Treating pretzels as the x-variable, what will the marginal rate of substitution (MRS) between beer and pretzels be at this consumer's optimal consumption bundle? $6.00 O 1/2 2 O $3.00

Suppose that a consumer has $200 to spend on two goods: beer and pretzels. The price of beer is $6.00 and the price of pretzels is $3.00. Treating pretzels as the x-variable, what will the marginal rate of substitution (MRS) between beer and pretzels be at this consumer's optimal consumption bundle? $6.00 O 1/2 2 O $3.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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