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Mike consumes only juices (1) and fruits (2). His preferences:
a) Initially consumes 9 juices and 10 fruits.If he reduces his juice intake to 4, how many fruits should he consume in order to enjoy the same utility as before?
b) Draw the indifference curve that passes through the initial combination of goods (9,10).Does the combination (9,10) belong to the same indifference curve as the combination (25,2)? If we double both combinations, will they belong to the same indifference curve?
c) What is the marginal substitution ratio of Mike in the combination (9.10) and how much in the combination (9.20)?
d) What is the general form of the Mike's battle marginal substitution ratio?
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