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 $4.Then in order to increase utility the individual should:
A)buy more steak and less beer.
B)buy more beer and less steak.
C)continue with current consumption plans.

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The Answer of 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 $4.Then in order to increase utility the individual should:
A)buy more steak and less beer.
B)buy more beer and less steak.
C)continue with current consumption plans.

Suppose an Individual's MRS (Of Steak for Beer)is 2:1