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Business, 29.01.2021 16:10 jessicasbss6840

Suppose that the price of music downloads from Orinoco is $1.00 per track, but you have to listen to some advertising, while the price of downloads from Lime is $1.20, with no advertising. Suppose that your indifference curves indicating the tradeoff between Orinoco and Lime downloads are convex (declining MRS). At your current level of consumption, your marginal utility of Orinoco downloads is 10 and of Lime downloads is 20. Assuming your budget is fixed for downloads, are you consuming your optimal bundle? If not, how should you change, relatively more Orinoco downloads, or Lime downloads? Explain/show your reasoning.

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Suppose that the price of music downloads from Orinoco is $1.00 per track, but you have to listen to...
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