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Consumers in Ireland (I) pay twice as much for Avocados (A) as they do for Melons (M). However, avocados and melons are equally priced in
Consumers in Ireland (I) pay twice as much for Avocados (A) as they do for Melons (M). However, avocados and melons are equally priced in France (F). If consumers in both countries are identical in terms of income and preferences, then when maximizing utility, will the marginal rate of substitution of melons for avocados be identical in both countries? If not, which will be higher? Use a diagram to complement your answer.
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