<p>This is because the question is asking the MRS of soda for hotdogs not the MRS of hotdogs for soda.</p>

<p>i.e </p>

<p>$MRS(MU(soda),MU(hotdogs))=MU(soda)/MU(hamburgers)= 2/10=1/5$ <p>To get 5 you need to solve the MRS of hotdogs to soda</p><p> $MRS(MU(hotdogs),MU(soda))=MU(hamburgers)/MU(Soda)=10/2=5$</p>

<p>Hope this helps.</p>

CC BY-SA 3.0
2016-08-09T21:51:51.630Z
2016-08-09T21:57:15.693Z
2016-08-09T21:57:15.693Z
EconJohn
<p>good day all</p>

<p>I am taking second year economics, but my textbook is not very clear on this topic</p>

<p>A quoted from </p>

<blockquote>
  <p>Intermediate Microeconomics and Its Application. Nicholson, Snyder. 11th Edition.</p>
</blockquote>

<p>Used in question: 2 Extracts from textbook, 1 text and 1 graph:</p>

<blockquote>
  <p>Indifference Curve Used as reference:</p>
</blockquote>

<p><a href="https://i.sstatic.net/q60TV.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/q60TV.png" alt="Graph"></a></p>

<blockquote>
  <p>Text Extract</p>
</blockquote>

<p><a href="https://i.sstatic.net/UVGMb.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/UVGMb.png" alt="Text Extract"></a></p>

<p><strong>Tutorial Question given by university:</strong></p>

<p><a href="https://i.sstatic.net/Ygou4.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/Ygou4.png" alt="Tutorial Question"></a></p>

<p><strong>My question:</strong></p>

<p>From the extract, I understand that the MRS is determined by the change in hamburgers / change in softdrinks which gives MRS = |2|.</p>

<p>From my tutorial question, slightly different terminology was used ("consumption"), which resulted the answer shown.</p>

<p>I do not understand why the answer for the tutorial question is 1/5 and not 5 (based on the example from the book). </p>

<p>Help would be very much appreciated!</p>

<microeconomics><marginal>
marginal utility of consuming vs marginal rate of substitution
CybeX
# marginal utility of consuming vs marginal rate of substitution

(Asked by: username_0 on 2016-08-09)

good day all

I am taking second year economics, but my textbook is not very clear on this topic

A quoted from

> Intermediate Microeconomics and Its Application. Nicholson, Snyder. 11th Edition.

Used in question: 2 Extracts from textbook, 1 text and 1 graph:

> Indifference Curve Used as reference:

[![Graph](https://i.sstatic.net/q60TV.png)](https://i.sstatic.net/q60TV.png)

> Text Extract

[![Text Extract](https://i.sstatic.net/UVGMb.png)](https://i.sstatic.net/UVGMb.png)

**Tutorial Question given by university:**

[![Tutorial Question](https://i.sstatic.net/Ygou4.png)](https://i.sstatic.net/Ygou4.png)

**My question:**

From the extract, I understand that the MRS is determined by the change in hamburgers / change in softdrinks which gives MRS = |2|.

From my tutorial question, slightly different terminology was used ("consumption"), which resulted the answer shown.

I do not understand why the answer for the tutorial question is 1/5 and not 5 (based on the example from the book).

Help would be very much appreciated!

**Tags:** microeconomics, marginal


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## 1 answers

### Answer by username_1 on 2016-08-09. Score: 1 | Accepted answer

This is because the question is asking the MRS of soda for hotdogs not the MRS of hotdogs for soda.

i.e

$MRS(MU(soda),MU(hotdogs))=MU(soda)/MU(hamburgers)= 2/10=1/5$

To get 5 you need to solve the MRS of hotdogs to soda

$MRS(MU(hotdogs),MU(soda))=MU(hamburgers)/MU(Soda)=10/2=5$

Hope this helps.


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