Problem
Inez reports that an extra banana would increase her utility by two units and an extra pear would increase her utility by six units. What is her MRS of bananas for pears-that is, how many bananas would she voluntarily give up to get an extra pear? Would Philip (who reports that an extra banana yields 100 units of utility whereas an extra pear yields 400 units of utility) be willing to trade a pear to Inez at her voluntary MRS?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.