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Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616Microeconomics 2nd Edition by Douglas Bernheim
Edition 2ISBN: 978-0071287616 Exercise 6
Shania consumes music CDs and food. (Well, she doesn't literally consume the CDs, she just buys them and listens to them.) Her utility function is
where C is the number of CDs and F is pounds of food. Her monthly income is $ M , food costs $1 per pound, and CDs cost $10 per CD. What is Shania's MRS CF Do her preferences have the declining MRS property What is her best choice as a function of M Draw Shania's income-consumption curve. Draw her Engel curves for CDs and food.
where C is the number of CDs and F is pounds of food. Her monthly income is $ M , food costs $1 per pound, and CDs cost $10 per CD. What is Shania's MRS CF Do her preferences have the declining MRS property What is her best choice as a function of M Draw Shania's income-consumption curve. Draw her Engel curves for CDs and food.Explanation
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Person S's utility function, details abo...
Microeconomics 2nd Edition by Douglas Bernheim
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