Marginal Rate of Substitution
#cfa #cfa-level-1 #economics #has-images #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-3-utility-theory #study-session-4
Notice that the convexity implies that at a bundle like a′′, which contains rather a lot of wine and not much bread, the consumer would be willing to give up a considerable amount of wine in exchange for just a little more bread. (The slope of the indifference curve is quite steep at that point.) However, at a point like a′, which contains considerably more bread but less wine than a′′, the consumer is not ready to sacrifice nearly as much wine to obtain a little more bread.
If you want to change selection, open original toplevel document below and click on "Move attachment"
Summary
status | not read | | reprioritisations | |
---|
last reprioritisation on | | | suggested re-reading day | |
---|
started reading on | | | finished reading on | |
---|
Details