Explain how the marginal rate of substitution changes as an allergy sufferer increases the consumption of Sudafed.
Question:
Explain how the marginal rate of substitution changes as an allergy sufferer increases the consumption of Sudafed.
Sudafed, used by allergy sufferers, contains as the active ingredient pseudoephedrine, which is widely used to make home-made methamphetamine. Allergy sufferers looking to buy Sudafed, must now show photo ID, and sign a logbook. The most common alternative, phenylephrine, isn’t as effective as pseudoephedrine.
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In economics the marginal rate of substitution MRS quantifies how much of one good a consumer is wil...View the full answer
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