Question: 1) Define/explain in one or two lines: a. Marginal rate of substitution b. Short-run 2) Below is a set of two indifference curves, IC1 and

1) Define/explain in one or two lines:a. Marginal rate of substitutionb.Short-run2) Below is a set of two indifference curves, IC1 and IC2,

1) Define/explain in one or two lines:

a. Marginal rate of substitution

b. Short-run

2) Below is a set of two indifference curves, IC1 and IC2, and two budget lines.

a. What allowed the consumer to increase utility from IC1 to IC2?

b. Ignoring the budget line, would the consumer prefer the hot dog / hamburger bundle represented by "B", "D", or does it not matter?

c. A tough one--How would you explain the fact that the consumption of hamburgers stayedat 40 while the consumption of hot dogs increased?

and two budget lines.a. What allowed the consumer to increase utility fromIC1 to IC2?b. Ignoring the budget line, would the consumer prefer the

\fa C C b

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