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Suppose an Individual's MRS (Of Steak for Beer)is 2:1

Question 9

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Suppose an individual's MRS (of steak for beer) is 2:1.That is,at the current consumption choices he or she is willing to give up 2 beers to get an extra steak.Suppose also that the price of a steak is $1 and a beer is $4.Then in order to increase utility the individual should:


A) buy more steak and less beer.
B) buy more beer and less steak.
C) continue with current consumption plans.

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