## Question

###### Suppose that consumers in Bangladesh pay twice as much per unit for mangoes as they pay for bananas, whereas consumers in Indonesia pay half as much for mangoes as they pay for bananas. Assuming that consumers maximize their utility, which country's consumers have a higher marginal rate of substitution of mangoes for bananas? Explain your answer.

Suppose that consumers in Bangladesh pay twice as much per unit for mangoes as they pay for bananas, whereas consumers in Indonesia pay half as much for mangoes as they pay for bananas. Assuming that consumers maximize their utility, which country's consumers have a higher marginal rate of substitution of mangoes for bananas? Explain your answer.

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