<u>The optimality condition in the consumer's choice between two goods is the following</u>
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The ratio of the marginal utilities is called the Marginal Rate of Substitution between goods x and y, and it arises from the preferences of the consumer towards the two goods. The MRS establishes the rate at which this consumer can give up a certain quantity of good x in exchange for another amount good y, while maintaining the same level of utility (it establishes the units of good x that would satisfy the consumer if he had to reject a certain number of units of y, given his personal preferences).
When MRS is equaled to the price ratio, it allows to calculate the bundle of goods x and y, that provides the maximum utility to this consumer given the market prices of x and y, which means that t<u>he solution provides the highest-utility bundle that he can afford. </u>
<u>If the rule does not hold, the choice might be either suboptimal or impossible.</u> When the result is suboptimal, the consumer acquires a bundle that he can afford but that is not the one yielding the maximum utility. If the result obtained is impossible, the consumer cannot afford the bundle, even tough it yields very high utility to him.
a law or laws, as a constitution, regarded as basic and, often, irrevocable by ordinary judicial or legislative action; organic law.
Survey is a sociological research method best used to study what cannot be directly observed such as attitudes and values among large number of people.
Answer:
The process of change brought with it new political, economic, and social problems, which stemmed from uneven development, unequal gains, and a growing perception that the benefits of higher income were not widely shared. Since 1974 limited progress has been made on those issues; however, the Colombian economy has grown despite pervasive violence, fed both by guerrilla insurgencies and traffic in narcotics.
There you go