Exhibit 6A-6 Consumer equilibrium

-As shown in Exhibit 6A-6, the marginal rate of substitution (MRS) at point X is ____ the marginal rate of substitution at point Y.
A) less than
B) greater than
C) equal to
D) twice

Question

Exhibit 6A-6 Consumer equilibrium
​ 
-As shown in Exhibit 6A-6, the marginal rate of substitution (MRS) at point X is ____ the marginal rate of substitution at point Y.
A) less than 
B) greater than 
C) equal to 
D) twice

Quizplus · Accepted Answer

At point X, the MRS is the slope of the indifference curve at that point. At point Y, the MRS is the slope of the indifference curve at that point. Since the indifference curve is steeper at point Y than at point X, the MRS at point Y is greater than the MRS at point X.

Exhibit 6A-6 Consumer Equilibrium