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I don't understand how to solve this question: A consumer buys 12 units of entertainment and 84 units of all other things. The consumer's income
I don't understand how to solve this question: 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: ? (answer: increase)
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