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Consumers in Queensland pay three times more for peaches than for bananas. However, in Victoria, peaches twice as expensive as bananas. If consumers in both
Consumers in Queensland pay three times more for peaches than for bananas. However, in Victoria, peaches twice as expensive as bananas. If consumers in both states maximise utility, then marginal rate of substitution between bananas and peaches (with bananas on the horizontal axis) MRSbp is
a) higher in Queensland
b) higher in Victoria
c) the same in both states
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