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Hi Everyone in this video I explain why we take the MRS (Marginal Rate of Substitution) to be equal to the absolute value or the negative of our Indifference Curve.
0:00 Introduction
0:33 Reviewing Slopes
2:41 Slope of an Indifference Curve
4:57 Interpreting the slope of an Indifference Curve as MRS
6:05 Second example
Finding the Slope / MRS as the ratio of MUx/MUy: • Why MRS = MUx/MUy (Equ...