Blutarsky is throwing a party at his Fraternity and is trying to choose what booze to buy. A bottle of vodka has four times the alcohol as a six-pack of beer
If Blutarsky only cares about the total amount of alcohol in his basket, what is his marginal rate of substitution of bottles of vodka for six-packs of beer? Devise a utility function to represent these preferences.
Blutarsky is willing to trade 1 bottle of vodka for 4 six packs of beer making his MRS = 4. A utility function for these preferences is U(V,B) = aV + bB, where a > 0, b > 0 and a/b = 4.
Economics
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