Joe's pizza and Coke consumption. At his current consumption levels, Joe's marginal rate of substitution of pizza slices for cans of coke (Up/U6) is...
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I 3. Joe's pizza and Coke consumption. At his current consumption levels, Joe’s marginal
rate of substitution of pizza slices for cans of coke (Up/U6) is given by 2. The price of a slice
of pizza is equal to $2, whereas the price of a can of Coke is $1.50. Suppose Joe is currently
spending all his income on pizza and coke and consuming positive amounts of both goods.
Would Joe be better off by increasing his consumption of pizza at the expense of Coke; or
increase the consumption of Coke at the expense of pizza; or is his current consumption
bundle optimal? (You can ignore integer constraints in your answer, that is, assume that
Joe can consume fractions of slices of pizza and fractions of cans of Coke.)

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