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Ed's utility from vegetables ( V ) and marshmallows ( M ) is given by the function U ( V , M ) = v

Ed's utility from vegetables (V) and marshmallows (M) is given by the function U(V,M)= v1/2M2. Last year, the price of vegetables was $8 and the price of marshmallows was $2. This year, the price of vegetables dropped to $2, the price of marshmallows remained the same. Both years, Ed had an income of $16.

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