Assume that a consumer consumes two commodities X and Y and makes five combinations for the two commodities
Combinations. X. Y.
A. 25. 3
B. 20. 5
C. 16. 10
D. 13. 18
E. 11. 28
Calculate marginal rate of Substitution and explain the answer.
"MRS= -(\\Delta\\ x" /"\\Delta\\ y)"
The table below shows the "\\Delta\\ x" and "\\Delta\\ y" and the Marginal rate of substitution calculated from the formula above.
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