Figure 21-7
The following graph shows three possible indifference curves (I) for a consumer.
-Refer to Figure 21-7. Which of the following comparisons is correct regarding the marginal rate of substitution (MRS) of scones for pudding?
A) The MRS is greater between bundles A and C than between bundles C and D.
B) The MRS is greater between bundles C and D than between bundles A and C.
C) The MRS is the same between bundles A and C and bundles C and D because all three bundles lie on the same indifference curve.
D) The MRS is greater between bundles B and C than between bundles C and E.
Correct Answer:
Verified
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