Question
Janice spends her entire weekly food allowance of P42 on hamburgers and soft drinks. The price of a hamburger is P20, and the price of
Janice spends her entire weekly food allowance of P42 on hamburgers and soft drinks. The price of a hamburger is P20, and the price of a soft drink is P10. Janice purchases 12 hamburgers and 18 soft drinks, and her marginal rate of substitution between hamburgers and soft drinks is 1. Is Janice in equilibrium? Explain.
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Economics Today The Macro View
Authors: Roger LeRoy Miller
18th Edition
0133884872, 978-0133884876
