Suppose Bart's MRS for sodas with chips is 6 bags of chips per soda.Also assume that Lisa's MRS for sodas with chips is 8 bags of chips per soda.Assuming that these rates of substitution don't depend on the amounts consumed,which of the following trades would make Bart and Lisa better off?
A) Bart gives Lisa 9 bags of chips in exchange for a soda
B) Bart gives Lisa 7 bags of chips in exchange for a soda
C) Bart gives Lisa 6 bags of chips in exchange for a soda
D) No mutually beneficial trade can occur here
Correct Answer:
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A) A