Oranges 25 ad b 20 Apples -lo 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 A Od to e. O a to e. Ob to e. Octo e.
Oranges 25 ad b 20 Apples -lo 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 A Od to e. O a to e. Ob to e. Octo e.
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 13PA
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Question
do fast
![Oranges
25
0
D
b
C
lo
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
Od to e.
O a to e.
Ob to e.
Octo e.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff82ab6c1-dc47-4d78-b785-6c55690dca0d%2F71da006b-378c-4fb5-857b-bb4cc9068849%2F8wmmil9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Oranges
25
0
D
b
C
lo
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
Od to e.
O a to e.
Ob to e.
Octo e.
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