1.When (for what type of preferences) is MRS%? constant?
2.Most consumers in Ontario choose between
electricity (costing 9c per kWh) and natural gas (costing 12c per m3) to heat their homes. After criticism over rapid price increases, Ontario is providing residents with an 8% rebate on electricity rates. Draw the budget constraints for Ontarions before and after this price change. Be sure to label the diagram fully (axes, intercepts and slope).