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You are still at the same point on the budget line where MRS = -2. If you increase your purchase and consumption of beets by

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You are still at the same point on the budget line where MRS = -2. If you increase your purchase and consumption of beets by 0.1 Ibs. You will need to determine the following values and show the critical work that indicates how you got to those values. 2. Calculate how much you would decrease your purchase and consumption of cabbages (in Ibs.) in order to maintain the same total expenditure. Remember that you are maintaining the same expenditure which means that you are moving along the budget line. Just show numbers. You must show your work in order to demonstrate understanding and get credit. 3. Write out BOTH forms of the utility exchange rate that come from an MRS value of -2. That is, what is Us equal to in terms of Uc (Us = _. Uc) and what is Uc equal to in terms of Us (UC = . Us)? Just provide the two exchange rates; no words.The consumer is purchasing and consuming beets (measured in pounds} and cabbages (also measured in pounds). She has a budget of $15, the price of beets is $1.25/lb (Pa = 1.25) and the price of cabbages is 50.75/Ib (Pc = $0.75]. The orientation of the axes is such that beets are on the horizontal (the x) axis and cabbages are on the vertical (the y) axis. The objective of the consumer is to maximize her utility subject to her budget constraint. Remember to never leave any number in a fraction unless it is over 1. 1. Write out the appropriate application of the marginal decision rule for utility maximization based on being at a point on the budget line where the marginal rate of substitution is -2 (MRS = -2) and given the prices and axis set-up provided above. To work this out, start with the appropriate version of the generic rule as laid out (correctly) in the guided inquiry exercise and insert the appropriate info (name of the good, the appropriate units, etc.)

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