Essay
Natalie is always willing to give up 10 ounces of licorice for 1 ounce of chocolate.Mitchell,on the other hand,will always give up 10 ounces of chocolate for 1 ounce of licorice.Based on this information,answer the following questions:
a.Do Natalie's preferences exhibit a diminishing marginal rate of substitution between chocolate and licorice?
Why or why not?
b.Assuming that Natalie and Mitchell have the same amount of money to spend on chocolate and licorice,who will purchase the most licorice?
Why?
Correct Answer:
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a.No,since she is always willing to give...View Answer
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Correct Answer:
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