# Tag Info

## Hot answers tagged consumer-theory

2

The answer is no. If you want to have decreasing marginal rates of substitution then you need quasi-concavity. In order for the notion of decreasing marginal rates of substitution to make sense, you need a few assumptions. First you restrict yourself to a two good setting, say with goods $x$ and $y$ You assume that the utility function $u(x,y)$ satisfies ...

1

We have politically decided that roads are free, but this is not the ideal economically. Economically, both parking and road use should be priced and they should in the long run also be changed in supply. So should the height of buildings. As population increase, land value increase. This means that how we should optimally use this land changes. Buildings ...

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