Figure 21-11
-Refer to Figure 21-11. As the consumer moves from point A to B to C to D, the consumer's marginal rate of substitution
A)remains constant.
B)increases.
C)decreases.
D)first increases, then decreases.

Question

Figure 21-11 
-Refer to Figure 21-11. As the consumer moves from point A to B to C to D, the consumer's marginal rate of substitution
A)remains constant. 
B)increases. 
C)decreases. 
D)first increases, then decreases.

Quizplus · Accepted Answer

As the consumer moves from point A to B to C to D, the consumer's marginal rate of substitution decreases. This is because as the consumer moves down the indifference curves, the marginal utility of the good being consumed decreases, while the marginal utility of the other good increases, making the consumer less willing to trade one good for the other.

Figure 21-11 -Refer to Figure 21-11. as the Consumer Moves from Point