Question
Assume P X = $100, P Y = $50, Bob's MRS X,Y is -1.25, and Sue's MRS X,Y is -1.5625. Directionally, what adjustments will happen
Assume PX= $100, PY= $50, Bob's MRSX,Yis -1.25, and Sue's MRSX,Yis -1.5625. Directionally, what adjustments will happen in this economy to move toward overall efficiency?
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Macroeconomics
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
1st Edition
978-0132109994, 0132109999
