Essay
(Figure: Concert Tickets and Movie Tickets I) Use the graph to answer the following questions. 
a. What is the marginal rate of substitution at 3 concert tickets and 8 movie tickets?
b. If the consumer's income decreases by 10% and the price of both goods decreases by 10%, how many concert and movie tickets will the consumer purchase?
c. If the price of movie tickets doubles, what does the marginal rate of substitution equal at the new utility-maximizing point?
Correct Answer:
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a. MRS = -Slope of the budget line = 1/2...View Answer
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