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Describe the behavior of the marginal rate of substitution for the various types of goods Perfect substitutes Neutral goods Perfect compliments Imperfect substitutes

      

Describe the behavior of the marginal rate of substitution for the various types of goods
Perfect substitutes
Neutral goods
Perfect compliments
Imperfect substitutes

  

Answers


Dana
Perfect substitutes’ indifference curves are characterized by the fact that the marginal rate of substitution is constant.
The marginal rate of substitution of neutral goods is infinite everywhere
The marginal rate of substitution for perfect compliments is either zero or infinite and nothing in between
The marginal rate of substitution for imperfect substitutes is diminishing

Dana05 answered the question on August 15, 2019 at 14:13


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