Sara has 12 to spend on popcorn and cola popcorn is 3 a bag


Sara has $12 to spend on popcorn and cola. Popcorn is $3 a bag, and cola is $3 a can. Figure 1 illustrates Sara's preferences. Use Figure 1 to work Problems.

What quantities of popcorn and cola does Sara buy and what is her marginal rate of substitution of popcorn for cola at her consumption point?

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Econometrics: Sara has 12 to spend on popcorn and cola popcorn is 3 a bag
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