Economics

Diminishing Marginal Rate of Substitution and Properties of the Indifference Curves

It explains the concepts of diminishing
marginal rate of substitution.

Since y decrease as x increases, the
change in y is negative i.e., -Δy, so the
equation is
MRSxy =Y
X
However, as with price elasticity of
demand the convention is to ignore the
minus sign in
MRSxy= Y

X

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