Figure 5-9
-In Figure 5-9, the consumer's marginal rate of substitution at his optimum choice of X and Y is

Name: Figure 5-9 -In Figure 5-9, the consumer's marginal rate of substitution at his optimum choice of X and Y is
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Question

Figure 5-9 
-In Figure 5-9, the consumer's marginal rate of substitution at his optimum choice of X and Y is

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) at the consumer's optimum choice is typically equal to the negative of the price ratio of the two goods, which is often -1 when the goods are perfect substitutes or when the consumer is indifferent between the two goods at the margin.

Figure 5-9 -In Figure 5-9, the Consumer's Marginal Rate of Substitution at of Substitution