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Question: Tan is helping Murphy pick out a new wardrobe as part of a makeover. In the accessories department, Tan suggests he buy three belts
Question: Tan is helping Murphy pick out a new wardrobe as part of a makeover. In the accessories department, Tan suggests he buy three belts and four pairs of shoes. Murphy decides to buy seven belts and two pairs of shoes, which comes out to the same cost. Which of the following are true about this decision? (Select one or more answers from below)
(a) The MRT is two belts per one pair of shoes. (b) The MRT is three belts per four pairs of shoes. (c) We cannot determine the MRT without knowing Murphy's total budget. (d) Tan has a stronger preference for belts relative to shoes than Murphy. (e) Murphy has a stronger preference for belts relative to shoes than Tan. (f) Relative preferences cannot be compared across individuals. (g) Belts are a luxury good for Tan. (h) Belts and shoes are substitutes for Murphy (i) Murphy is happier with the final outcome than Tan is. (j) Utility levels cannot be compared across individuals.
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