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Jon is always willing to trade one can of Coke for one can of Sprite, or one can of Sprite for one can of Coke.

Jon is always willing to trade one can of Coke for one

can of Sprite, or one can of Sprite for one can of Coke.

a. What can you say about Jon's marginal rate of

substitution?

b. Draw a set of indifference curves for Jon.

c. Draw two budget lines with different slopes and

illustrate the satisfaction-maximizing choice. What

conclusion can you draw?

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