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In well-organized markets, everyone faces the same prices p1 and p2 for good 1 and good 2. If all consumer are choosing their best
In well-organized markets, everyone faces the same prices p1 and p2 for good 1 and good 2. If all consumer are choosing their best bundles (assume preference is well-behaved and optimal choices are Interior solutions) and all consumer have different preferences, then All consumers have the same marginal rate of substitution when choosing the best bundle. All consumers may have different marginal rate of substitution when choosing the best bundle.
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