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The Smith household allocates its monthly grocery budget between vegetables (V) and other food (F). The Smiths' preferences are represented by the utility function U(V,F) = V0.1F0.9.
a. What is their marginal rate of substitution of vegetables for other food?
b. Suppose the Smiths' grocery budget is $140/month, the price of vegetables is $5 per pound, and the price of other food is $3 per pound. What quantities of F and V will the Smiths choose to consume?
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