MRS and the Price Ratio: {{ model.utility.title }}


utility
u({{ notation.xLabel }}, {{ notation.yLabel }}) = {{ model.utility.formula(false) }}
\alpha = {{params.alpha | number: 2}}:
r = {{model.utility.r | number: 2}}:
budget
{{ model.budget.formula(false) }}
{{ notation.incomeLabel }} = {{params.income | number: 0}}:
{{ notation.pxLabel }} = {{params.px | number: 2}}:
{{ notation.pyLabel }} = {{params.py | number: 2}}:
Note: assumes buy only {{ notation.xGoodLabel }} if MRS = \frac{ {{ notation.pxLabel }} }{ {{ notation.pyLabel }} }


Make bundle draggableSnap to optimal bundle
MRS_{x,y} = {{ params.px/params.py | number:2 }} = \frac{P_x}{P_y} MRS_{x,y} = {{ model.utility.mrs({x:params.x, y:model.bundle.y}) | extendedReal:2 }} < {{ params.px/params.py | number:2 }} = \frac{P_x}{P_y} MRS_{x,y} = {{ model.utility.mrs({x:params.x, y:model.bundle.y}) | extendedReal:2 }} > {{ params.px/params.py | number:2 }} = \frac{P_x}{P_y}
Copyright (c) Christopher Makler / econgraphs.org