Consider the following statements: (1) the MRS is the magnitude of the slope of an indifference curve (II) the MRS is always equal to the ratio of the marginal utilities, (III) the MRS is always equal to the price ration, I, II, and III are true only I and II are true only I and III are true only I is true P X P Y MU X MU Y
Consider the following statements: (1) the MRS is the magnitude of the slope of an indifference curve (II) the MRS is always equal to the ratio of the marginal utilities, (III) the MRS is always equal to the price ration, I, II, and III are true only I and II are true only I and III are true only I is true P X P Y MU X MU Y
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 2SQ
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Transcribed Image Text:Consider the following statements:
(1) the MRS is the magnitude of the slope of an indifference curve
(II) the MRS is always equal to the ratio of the marginal utilities,
(III) the MRS is always equal to the price ration,
I, II, and III are true
only I and II are true
only I and III are true
only I is true
P
X
P
Y
MU
X
MU
Y
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