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Unformatted text preview: bow inwards towards the origin and do not intersect the axes). The price of a milkshake is $1 and the price of a hamburger is $3. She is spending all her income, and her Marginal Rate of Substitution is 2. (i) is Jane consuming optimally? (ii) if so , show why,. If not , should Jane buy more hamburgers and fewers milkshakes, or vice versa?...
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This note was uploaded on 03/20/2008 for the course ECO 1 taught by Professor Gunter during the Spring '04 term at Lehigh University .
- Spring '04