Given the indifference curve shown to the right:10-a. What is the marginal rate of substitution as you move from point C to point E?9-- (enter your answer as a fraction and note that the minus sign has beenadded).8-S (20, 7)b. Would you expect the absolute value of the MRS to be higher, lower, or theE (27, 6)same as you continue to substitute audio CDs for books?6-F (36, 5)& 5-G (47, 4)B (60, 3)2-IC0420 30 40 50 60 70Audio CDs (per year)1080 90 100ReacticétvMacBook Air80DIIDDF1F2F3F4F5F6F7F8F9F10F11!#&1478QWEYU{FJKCVBくtioncommandcommandoptionレΣト* 3レ Next QuestionA utility function is given asU= MBQ45-where B represents the quantity of books consumed and M representsmagazines. This utility is shown via indifference curves in the diagram to theright. (Round all numeric responses to two decimal places.)40-35-E 30-The level of utility at point A is25-The marginal utility of books at point A is20-15-10-5-0-101540 4520 25 30Books (B)3550Reactions27étvMacBook Air80DIIDDF1F2F3F4F5F6F7F8F9F10F11@2$&479QWERTYUSDFGJKLVNioncommandcommandoption* 00Magazines (M)B# 3**

* answer :- * a) Marginal Rate of Substitution = Change in good Y ( books)/ change in good X( CD)…

Given the indifference curve shown to the right: Q 10- a. What is the marginal rate of substitution as you move from point C to point E? (enter your answer as a fraction and note that the minus sign has been added). 9- Q 8- S (20, 7) É (27, 6) b. Would you expect the absolute value of the MRS to be higher, lower, or the 7- same as you continue to substitute audio CDs for books? F (36, 5) G (47, 4) в (60, 3) 3- 2- IC 1- 0- 10 20 30 40 50 60 70 80 90 100 Audio CDs (per year) Reactic OCT 27 tv MacBook Air 08 F3 DII DD F1 F2 F4 F5 F6 F7 F8 F9 F10 F11 $ % & 1 2 4 6 7 * CO to Books (per year) %# 3

Given the indifference curve shown to the right: Q 10- a. What is the marginal rate of substitution as you move from point C to point E? (enter your answer as a fraction and note that the minus sign has been added). 9- Q 8- S (20, 7) É (27, 6) b. Would you expect the absolute value of the MRS to be higher, lower, or the 7- same as you continue to substitute audio CDs for books? F (36, 5) G (47, 4) в (60, 3) 3- 2- IC 1- 0- 10 20 30 40 50 60 70 80 90 100 Audio CDs (per year) Reactic OCT 27 tv MacBook Air 08 F3 DII DD F1 F2 F4 F5 F6 F7 F8 F9 F10 F11 $ % & 1 2 4 6 7 * CO to Books (per year) %# 3

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 3WNG

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