Intuition Video 1 - MRS & Price Ratio
7:18
YouTubeEric Yang
Intuition Video 1 - MRS & Price Ratio
Here, I quickly explain why we set MRS = Price Ratio. I forget to go in depth about how MU is the partial derivative of Utility with respect to whichever good you are interested in, but yea...it is Also, remember that in most cases (not all), MRS is not constant and so the goal is to arrange our bundle of X1 and X2 up until the point that the ...
536 viewsNov 2, 2021
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