4. We learned that the slope of the indifference curve is called the marginal rate of substitution of X forY. What does the MRSXY tell us about a consumer's preferences between two goods? 14.At the point of tangency, what is true about the ratio of the goods' marginal utilities and the ratio of their prices?

Principles of Microeconomics (MindTap Course List)
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Chapter21: The Theory Of Consumer Choice
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4. We learned that the slope of the indifference curve is called the marginal rate of substitution of X forY.
What does the MRSXY tell us about a consumer's preferences between two goods?
14.At the point of tangency, what is true about the ratio of the goods' marginal utilities and the ratio of their
prices?
Transcribed Image Text:4. We learned that the slope of the indifference curve is called the marginal rate of substitution of X forY. What does the MRSXY tell us about a consumer's preferences between two goods? 14.At the point of tangency, what is true about the ratio of the goods' marginal utilities and the ratio of their prices?
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