Sara has $12 to spend on popcorn and nuts. Popcorn is $3 a bag, and nuts is $3 a bag. FigureA13.1 illustrates Sara’s preferences. Use the figure to work Problems.What quantities of popcorn and nuts does Sara buy and what is her marginal rate of substitution of popcorn for nuts at her consumption point?

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FIGURE A13.1 Appendix Checkpoint Study Plan Problems I to 3 Popcorn (bags) 8 7 SO 5 4 3 2 01 2 3 4 5 6 14 /₂ lo 7 8 Nuts (bags)