Explain why the budget line can be called objective

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Explain why the budget line can be called "objective" but an indifference curve is called "subjective." Explain why, if a consumer is to be in equilibrium, the marginal rate of substitution of good X for good Y must equal the negative ratio of the price of good X to price of good Y. (use a graph too if you think it will help)

Reference no: EM13896843

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