Which market is in excess demand

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Reference no: EM131161160

Jennifer and Drew consume orange juice and coffee. JenniferÆs MRS of orange juice for coffee is 1 and DrewÆs MRS of orange juice for coffee is 3. If the price of orange juice is $2 and the price of coffee is $3,

1. Which market is in excess demand? Please show work to determine this.

2. What do you expect to happen to the prices of the two goods?

3. What will the new prices of orange juice and coffee be based on supply demand, please show work and formulas. Explain

Reference no: EM131161160

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