Economy, asked by ravin7752, 11 months ago

Why mrs must be equal to the ratio of prices of two goods at equilibrium point?

Answers

Answered by ItzVaish
2

Pranam __/\__

Marginal Rate of Substitution (MRS) must be equal to the ratio of prices, also called the Market Rate of Exchange (MRE) to attain consumer equilibrium.

Similar questions