If Hector's marginal rate of substitution between pens and pencils is constant, regardless of how many pens and pencils he has, then his indifference curves
A)are right angles.
B)are straight lines.
C)slope upward.
D)cross one another at certain points.

Question

Quizplus · Accepted Answer

When the marginal rate of substitution between two goods is constant, it means that the consumer is willing to give up a constant amount of one good to get an additional unit of the other good. This results in straight-line indifference curves with a constant slope.

If Hector's Marginal Rate of Substitution Between Pens and Pencils