1. We learned that the slope of the indifference curve is called the marginal rate of substitution of X for Y. What does the MR S XY tell us about a consumer’s preferences between two goods? 2. Why does the slope of the indifference curve vary along the curve? What does this variability tell us about consumers’ preferences?
1. We learned that the slope of the indifference curve is called the marginal rate of substitution of X for Y. What does the MR S XY tell us about a consumer’s preferences between two goods? 2. Why does the slope of the indifference curve vary along the curve? What does this variability tell us about consumers’ preferences?
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 2CQQ
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1. We learned that the slope of the indifference curve is called the marginal rate of substitution of X for Y. What does the MR S XY tell us about a consumer’s preferences between two goods?
2. Why does the slope of the indifference curve vary along the curve? What does this variability tell us about consumers’ preferences?
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