Elise consumes cans of anchovies, q 1 , and boxes of biscuits, q 2 . Each of
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Elise consumes cans of anchovies, q1, and boxes of biscuits, q2. Each of her indifference curves reflects strictly diminishing marginal rates of substitution. Where q1 = 2 and q2 = 2, her marginal rate of substitution between cans of anchovies and boxes of biscuits equals -1. Will she prefer a bundle with three cans of anchovies and a box of biscuits to a bundle with two of each? Why?
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Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
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