Question

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

Answer 1

☺ HIII FRD HERE UR ANS ☺
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⬆️⬆️⬆️⬆️⬆️⛔⛔⛔♦️♦️♦️Why marginal rate of substitution must be equal to ratio of prices of goods .... First, let's understand what's the difference between the two. ... This is the point of consumer equilibrium.

Answer 2

Because they both are the points of consumer equilibrium .
So , Mrs must be equal to the ratio of prices of two goods at equilibrium point .

It is a permanent truth ...

It always show the same conclusion ....

So , they are always equal .....

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