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Business, 04.03.2020 02:34 putaprincess16
Assume that Jim is a rational consumer who consumes only two goods, apples (A) and nuts (N). Assume that his marginal rate of substitution of apples for nuts is given by the following formula:
MRS = MUN/MUA = A/N
That is, Jim’s MRS is equal to the ratio of the number of apples consumed to the number of nuts consumed.
a. Assume that Jim’s income is $100, the price of nuts is $5, and the price of apples is $10.What quantities of apples and nuts will he consume?
b. Find two additional points on his demand curve for nuts (PN = $10 and PN = $2).
c. Sketch one of the equilibrium
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Assume that Jim is a rational consumer who consumes only two goods, apples (A) and nuts (N). Assume...
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