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Define the marginal rate of substitution(MRS). Explain why MRSxy should be equal to the relative price of X good (Px/Py) at the optimal consumption bundle.
Define the marginal rate of substitution(MRS). Explain why MRSxy should be equal to the relative price of X good (Px/Py) at the optimal consumption bundle. In other words, how consumer's satisfaction level can be improved when MRSxy > Px/Py or MRSxy
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