This topic contains a solution. Click here to go to the answer

Author Question: Mary likes to consume either pizza or spaghetti. She has $48 to spend on these meals. a. One week ... (Read 79 times)

nummyann

  • Hero Member
  • *****
  • Posts: 576
Mary likes to consume either pizza or spaghetti. She has $48 to spend on these meals.
a.  One week the price of pizza is $8 and the price of spaghetti is $6. Mary uses the indifference curve analysis she learned in microeconomics to decide how much of each type of meal to buy. She puts pizza on the vertical axis and spaghetti on the horizontal axis. What is the marginal rate of substitution at the combination of pizza and spaghetti that Mary chooses?
b.  The next week, the price of pizza is $6 and the price of spaghetti is $8 so Mary adjusts her consumption combination to maximize her total utility. What is her marginal rate of substitution now?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by nummyann on May 24, 2019

Joc

  • Sr. Member
  • ****
  • Posts: 317
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 64% of students answer this correctly




Joc

  • Sr. Member
  • ****
  • Posts: 317

 

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

For a complete list of videos, visit our video library