Question

why MRS must be equal to price ratio of both the goods for a consumer is in eqilibrium

Answer 1

Explanation:

Marginal Rate of Substitution must be equal to the goods for a consumer's equilibrium because the consumer is having the income for all possible combination of the two goods at the level of maximum satisfaction with the given income and prices of a commodity.

Hope it helps!

Answer 2

Answer:

Marginal Rate of Substitution must be equal to the goods for a consumer's equilibrium because the consumer is having the income for all possible combination of the two goods at the level of maximum satisfaction with the given income and prices of a commodity.