When indifference curves are bowed inward, the marginal rate of substitution is
A)the same at all points along an indifference curve.
B)increasing as the consumer moves to the right along an indifference curve.
C)decreasing as the consumer moves to the right along an indifference curve.
D)constant.

Question

Quizplus · Accepted Answer

When indifference curves are bowed inward, the marginal rate of substitution (MRS) is decreasing as the consumer moves to the right along an indifference curve. This means that the consumer is willing to give up less of one good for an additional unit of the other good as they move to the right, indicating diminishing marginal utility of the good they are receiving in exchange.

When Indifference Curves Are Bowed Inward, the Marginal Rate of Substitution