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Sally Consumes Only Two Goods, a and B

Question 32

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Sally consumes only two goods, A and B. The prices are PA = $10 and PB = $15. For the last units of each good the marginal utilities are MUA = 30 and MUB = 40. Sally should consume more ______ and less ______ because ____________ is greater than ____________. When Sally reaches equilibrium her MRS will be ______.

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A; B; MUA /...

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