Oranges 25 a d 20 Apples In the diagram, suppose the consumer is currently exhausting his or her income at a point where the marginal rate of substitution of apples for oranges is greater than 5/4. That Is, MUA/MU >5/4. To maximize utility, the consumer should move from point Multiple Choice о о о a to e b to e. c to e. ៖ d to e.

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Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
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Oranges
25
a d
20
Apples
In the diagram, suppose the consumer is currently exhausting his or her income at a point where the marginal rate of substitution of apples for oranges is greater than 5/4. That Is, MUA/MU >5/4. To maximize utility, the consumer should move from point
Multiple Choice
о
о
о
a to e
b to e.
c to e.
៖
d to e.
Transcribed Image Text:Oranges 25 a d 20 Apples In the diagram, suppose the consumer is currently exhausting his or her income at a point where the marginal rate of substitution of apples for oranges is greater than 5/4. That Is, MUA/MU >5/4. To maximize utility, the consumer should move from point Multiple Choice о о о a to e b to e. c to e. ៖ d to e.
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