Show a consumers budget constraint and indifference curves for wine and cheese. Show the optimal consumption choice.

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Show a consumer’s budget constraint and indifference curves for wine and cheese. Show the optimal consumption choice. If the price of wine is €3 a glass and the price of cheese is €6 a kilo, what is the marginal rate of substitution at this optimum?

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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