Figure 4.7.2
-Refer to Figure 4.7.2 above. Which of the expressions in the figure represents the marginal rate of substitution, MRS_XY?

Question

Figure 4.7.2 -Refer to Figure 4.7.2 above. Which of the expressions in the figure represents the marginal rate of substitution, MRS_XY?

Quizplus · Accepted Answer

The slope of the indifference curve at point U1 represents the marginal rate of substitution between goods X and Y. Therefore, expression B, which is the slope of the tangent line to the indifference curve at point U1, represents the marginal rate of substitution MRS_XY.

Figure 4.7.2 -Refer to Figure 4.7.2 Above. Which of the Expressions in Expressions