After the rotation of the budget line from red to blue Good X At point A, the MRS is greater than the oportunity cost of good Y At point A the MRS is less than the oportunity cost of good Y IC₂ IC Good Y

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter2: Choice In A World Of Scarcity
Section: Chapter Questions
Problem 19CTQ: Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers...
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After the rotation of the budget line from red to blue.
Good X
At point A, the MRS is greater than the oportunity cost of good Y
At point A, the MRS is less than the oportunity cost of good Y.
IC₂
IC
Good Y
Transcribed Image Text:After the rotation of the budget line from red to blue. Good X At point A, the MRS is greater than the oportunity cost of good Y At point A, the MRS is less than the oportunity cost of good Y. IC₂ IC Good Y
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