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please explain the equation and MRS function clearly and elaborate
Ely's preferences for bread and soup can be represented by the utility function U (S,B) = S(1+B.) Soup costs $1 per pint and bread costs Pb per ounce. Ely has $10 to spend. What is the formula for Ely's MRSSB?
Does it have the declining MRS property?
What is Ely's best choice?
Explain how you get your answer.
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