Two friends are discussing their plans for the month. One works at a movie theater and gets 10 free movie tickets; the other works at a concert venue and gets 10 free concert tickets. What can we predict about the first person’s marginal rate of substitution between movies and concerts? What can we predict about the second person’s marginal rate of substitution between the two? How does this relate to the slope of each of their indifference curves?
Two friends are discussing their plans for the month. One works at a movie theater and gets 10 free movie tickets; the other works at a concert venue”
by | Mar 12, 2022 | Uncategorized
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