Assume tony's marginal rate of substitution (mrs) of x for y is 12 -that is, mux muy 12 -the price of x is $39, and the price of y is $3. tony is spending too much of his income on y. do you agree or disagree? ○ a. o b. o c. o d. disagree. the mu per dollar spent on x is less than the mu per dollar spent on y. he should substitute y for x to increase utility. disagree. the mu per dollar spent on x is greater than the mu per dollar spent on y. he should substitute yfor x to increase utility. agree. the mu per dollar spent on y is greater than the mu per dollar spent on x. he should substitute x for y to increase utility. agree. the mu per dollar spent on xis greater than the mu per dollar spent on y. he should substitute x for y to increase utility.

Horace society is planning its annual western fair raceway gala. the gala committee has assembled the following expected costs for the event: dinner (per person) $10 gaming token and program (per person) $2 prize payouts $4,300 tickets and advertising $800 private box suite rental $1,700 lottery licenses $200 the committee members would like to charge $40 per person for the evening’s activities. required: 1. what is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. assume that last year only 200 persons attended the dinner-dance. if the same number attend this year, what price per ticket must be charged in order to break even? 3. refer to the original data ($40 ticket price per person). prepare a cvp graph for the dinner- dance from zero tickets up to 600 tickets sold.