一道关于边际替代率的问题The absolute value of Mar's MRS at his current c
一道关于边际替代率的问题 The absolute value of Mar's MRS at his current consumption bundle is greater than .(That is MU1/MU2 >3).Mars has convex preferences and is currently consuming positive amounts of both goods. a.taking away some of good 1 and giving Mars 3 units of good 2 for each unit of good 1 he is taken away will necessarily make him worse off. b.taking away some of good 1 and giving Mars 3 units of good 2 for each unit of good 1 he is taken away will necessarily make him better off. c.Giving Mars some of good 1 and taking away 3 units of good 2 for each unit of good 1 he is given will necessarily make him worse off. d.Giving Mars some of good 1 and taking away 3 units of good 2 for each unit of good 1 he is given will necessarily make him better off. e.More than one of the above is true.
His preferences frontier is convex. Suppose at one point, MU1/MU2>3, and good1 is at axis X, good2 is at axis Y, now give Mars some of good 1, the point on the frontier moves down. At the new point, MU1/MU2 is smaller, but we don't know if it's bigger than 3 or less than 3. So we are not sure if option D will necessarily make him better off.