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A consumer buys 12 units of entertainment and 84 units of all other things. The consumer's income elasticity of demand is greater than 1 for
A consumer buys 12 units of entertainment and 84 units of "all other things." The consumer's income
elasticity of demand is greater than 1 for entertainment and less than 1 for all other things. If income
increases by 10%, then the consumer's marginal rate of substitution at the utility-maximizing market
bundle will increase.
Could you please explain why the MRS will increase in this case?
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