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:

Personal Responsibility

The belief that individuals are accountable for their actions and consequences.

Irrational Fear

A fear that is disproportionate to the threat or danger it is associated with, often resulting from psychological factors.

Paying Attention

The act of concentrating or focusing one's mental energies on a specific object, task, or subject.

Present Moment

The current point in time, emphasizing focus and mindfulness on the immediate situation or experience without distraction.