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Suppose an individual's MRS ( of steak for beer) is 2:1. That is, at the current consumption choices he or she is willing to give
Suppose an individual's MRS ( of steak for beer) is 2:1. That is, at the current consumption choices he or she is willing to give up 2 beers to get an extra steak. Suppose also that the price of a steak is $1 and a beer is 254. Then in order to increase utility the individual should a. continue with current consumption plans. b. buy more beer and less steak. c. buy more steak and less beer. d. Not enough information to answer the
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