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Thomas has constant MRS between shoes (S) and boots (B) and is indifferent between bundles(S=1,B=2)and(S = 3, B = 1). Atprices ps = 1 and pb = 1 and I = 5, what is Thomass optimal bundle? (a) (S, B) = (0, 5) (b) (S, B) = (5, 0) (c) (S , B) (2, 3) (d) (S, B) = (3,2) =

Thomas has constant MRS between shoes (S) and boots (B) and is indifferent between bundles(S=1,B=2)and(S = 3, B = 1). Atprices ps = 1 and pb = 1 and I = 5, what is Thomass optimal bundle? (a) (S, B) = (0, 5) (b) (S, B) = (5, 0) (c) (S , B) (2, 3) (d) (S, B) = (3,2) =

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Thomas has constant MRS between shoes (S) and boots (B) and is indifferent between bundles(S=1,B=2)and(S = 3, B = 1). Atprices ps = 1 and pb = 1 and I = 5, what is Thomass optimal bundle? (a) (S, B) = (0, 5) (b) (S, B) = (5, 0) (c) (S , B) (2, 3) (d) (S, B) = (3,2) =
Transcribed Image Text:Thomas has constant MRS between shoes (S) and boots (B) and is indifferent between bundles(S=1,B=2)and(S = 3, B = 1). Atprices ps = 1 and pb = 1 and I = 5, what is Thomass optimal bundle? (a) (S, B) = (0, 5) (b) (S, B) = (5, 0) (c) (S , B) (2, 3) (d) (S, B) = (3,2) =
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