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Suppose the Marginal Value of Bread in Terms of Wine

Question 69

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Suppose the marginal value of bread in terms of wine is 1/2 bottle of wine per loaf of bread,while the relative price of bread in terms of wine is 1/4 bottle of wine per loaf of bread.Explain how the consumer can adjust his purchases to raise his level of satisfaction.

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The marginal value indicates that the co...

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