Question: Hi , I'm struggling to answer this true and false question can u help me please? Thank you! Two consumers, 1 and 2, are active

Hi , I'm struggling to answer this true and false question can u help me please? Thank you!

Two consumers, 1 and 2, are active on the same two markets (one market for goodxand one market for goody) and purchase positive quantities of both goods. Letaandbdenote their respective consumption plans, and letMRS1 (a) andMRS2 (b) be their marginal rates of substitutions.ThenMRS1 (a) = MRS2 (b) even if they have different preferences and different incomes.

True

False

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!