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 $l and a beer is 25¢. Then in order to increase utility the individual should
Not enough information to answer the question
0%
buy more beer and less steak
0%
buy more steak and less beer
100%
continue with current consumption plans
0%

Question

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 $l and a beer is 25¢. Then in order to increase utility the individual should

Not enough information to answer the question

0%

buy more beer and less steak

0%

buy more steak and less beer

100%

continue with current consumption plans

0%

Answer

Not enough information to answer the question

Answer

buy more beer and less steak

Answer

buy more steak and less beer

Answer

continue with current consumption plans

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Suppose an individual's MRS (of steak for beer) is 2:1. That is, at the current ...

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