As one moves down a typical indifference curve,the marginal rate of substitution
A)increases.
B)decreases.
C)is constant.
D)will switch from positive to negative.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) represents the rate at which a consumer is willing to give up one good for another while maintaining the same level of utility. As a consumer moves down an indifference curve, they are willing to give up less and less of the good on the horizontal axis for an additional unit of the good on the vertical axis. This means that the MRS decreases as one moves down a typical indifference curve.

As One Moves Down a Typical Indifference Curve,the Marginal Rate