John likes t Diet Pepsi twice as much as Diet Coke a What will he consume if the price of Diet Coke is $0.50/can and the price of Diet Pepsi is $0.50/can? What is the MRS in this scenario? Briefly explain Page 4 b) What will he consume if the price of Diet Coke is $0.50/can and the price of Diet Pepsi is $0.75/can? What is the slope of the budget constraint in this scenario (put Diet Pepsi - x2 on vertical axis).? What is the MRS in this scenario? c Suppose the price of a bottle of Diet Coke is $1. What would the price of a bottle of Diet Pepsi have to be for John to be indifferent between which product he purchases?

Question 5 (Preferences). John likes to drink Diet Coke {X1} and Diet Pepsi (x2). Suppose he has $30 and likes Diet Pepsi twice as much as Diet Coke. a) What will he consume if the price of Diet Coke is $0.5CI/ can and the price of Diet Pepsi is $0.50/ can? What is the MRS in this scenario? Briey explain. Page 4 b) What will he consume if the price of Diet Coke is $0.5U/ can and the price of Diet Pepsi is $0.75f can? What is the slope of the budget constraint in this scenario (put Diet Pepsi - x; on vertical axis}? What is the MRS in this scenario? c) Suppose the price of a botde of Diet Coke is $1. What would the price of a bottle of Diet Pepsi have to be forjohn to he indifferent between which product he purchases