Answer to Question #16063 in Microeconomics for himanshu

Question #16063

if good1 is neutral ,what is marginal rate of substitution of good2?

Expert's answer

It depends on the second good. If second good is positive then MRS is positive,
cause curve has positive slope; if 2 good - negative, then MRS - negative.

Learn more about our help with Assignments: Microeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. If A firm with market power has estimated the following demand function for its product: Q = 12,000
2. factors influencing prices in the global oil market
3. 9. Suppose we know that the price elasticity of demand for green chiles is – 0.8 Is the demand fo
4. Elasticity and revenue. For each of the scenarios, will total revenue rise, fall or stay the same?
5. 5. 2. Supply and demand for breadfruit. Quantity Demanded Price Quantity Supplied 180
6. 4. What will happen to equilibrium price and quantity? For each scenario draw a basic supply-demand
7. Consider the constraint X3 + X4 + X5 + X6 + X7 >= 27, representing Air Express' Monday worke

Who Can Help Me with My Assignment

There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
How to Finish Assignments When You Can’t

Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
How to Effectively Study for a Math Test

Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…