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Figure 9.2.2 Refer to Figure 9.2.2, which shows Otto's preferences when ...

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A graph plots books versus C Ds. The horizontal axis is labeled C Ds, and the vertical axis is labeled books. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 5 in increments of 1 unit. A graph is a line labeled B sub 1 falling through (0, 5), (6, 2), and (10, 0). Another line labeled B sub 0 falling through (0, 5), (2, 3), and (5, 0). A concave up decreasing curve labeled I sub 1 intersects B sub 1 at (6, 2). A concave up decreasing curve labeled I sub 0 intersects B sub 0 at (2, 3). Two horizontal and two vertical dashed lines through (0, 3) to (2, 3) at B sub 0 and (0, 2) to (6, 2) at B sub 1.

Figure 9.2.2

Refer to Figure 9.2.2, which shows Otto's preferences when he spends all his income on books and CDs. If Otto chooses to buy 3 books and 2 CDs, what is his marginal rate of substitution between the two goods?

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