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Disscuss the Marginal rate of substitution
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- The marginal rate of substitution is the slope of the budget line. T or FWhat happen to the marginal rate of substitution as we move along the non linear indifferenceFrom the information given above calculate the price of Y. Given the information above, calculate how many X this consumer could purchase if all $1,000 were spent on X. Calculate the price of X. Suppose the price of X decreases to 2, what would be the marginal rate of substitution at the new optimal point?