As we move down and to the right along an indifference curve,the marginal rate of substitution:
A) increases.
B) decreases.
C) remains constant.
D) increases, then decreases.

Question

Quizplus · Accepted Answer

The marginal rate of substitution measures the rate at which a consumer is willing to trade one good for another while remaining indifferent. As we move down and to the right along an indifference curve, we are technically increasing the quantity of both goods, but because the consumer is still indifferent, the rate at which they are willing to trade one good for another (the marginal rate of substitution) decreases. Therefore, the correct answer is B, decreases.

As We Move Down and to the Right Along an Indifference