When indifference curves are bowed inward, the marginal rate of substitution is
ID: 1092685 • Letter: W
Question
When indifference curves are bowed inward, the marginal rate of substitution is
Answer:
increasing as the consumer moves to the right along an indifference curve.
decreasing as the consumer moves to the right along an indifference curve.
the same at all points along an indifference curve.
constant.
a.increasing as the consumer moves to the right along an indifference curve.
b.decreasing as the consumer moves to the right along an indifference curve.
c.the same at all points along an indifference curve.
d.constant.
Explanation / Answer
a increasing as the consumer moves to the right along an indifference curve
Reason: He is willing to trade away goods he has in abundance