Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
← 55 members online
 0 viewing
coolsaurabh
Group Title
For a consumer to be equilibrium why must marginal rate of substitution be equal to the ratio of prices of two goods?
 one year ago
 one year ago
coolsaurabh Group Title
For a consumer to be equilibrium why must marginal rate of substitution be equal to the ratio of prices of two goods?
 one year ago
 one year ago

This Question is Open

ANGELNAV Group TitleBest ResponseYou've already chosen the best response.1
bcoz v need tangency of budget line to the IC for maximising utility, n for that, slopes of both must b equal i.e. MRS(slope of IC)=P1/P2(slope of budget line)
 one year ago

surjeet Group TitleBest ResponseYou've already chosen the best response.0
In order to maximize utility this condition must be satisfied... and as you know more is better for consumer..
 one year ago
See more questions >>>
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.