If the Marginal Rate of Substitution Is Infinite or Zero

question 72

Essay

If the marginal rate of substitution is infinite or zero, show that the substitution effect of a price change for a good is zero.

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Definitions:

Judicial Proceeding

A proceeding or action brought in a court to resolve a dispute or enforce a right.

Public Law

A body of law that governs relationships between individuals and the government, including constitutional, administrative, and criminal laws.

Litigation

The process of taking legal action or engaging in a lawsuit to resolve disputes between parties.

Administrative Agencies

Government bodies responsible for the oversight and administration of specific functions, often involved in enforcing laws and regulations.