Problem
The following table represents Sue's preferences for bottled water and soft drinks, the combination of which yields the same level of utility.
|
Combination
|
Bottled
|
Soft
|
|
of Bottled Water
|
Water
|
Drinks
|
|
and Soft Drinks
|
per Month
|
per Month
|
|
A
|
5
|
11
|
|
B
|
10
|
7
|
|
C
|
15
|
4
|
|
D
|
20
|
2
|
|
E
|
25
|
1
|
Calculate Sue's marginal rate of substitution of soft drinks for bottled water at each rate of consumption of water (or soft drinks). Relate the marginal rate of substitution to marginal utility
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.