Use the figure below to answer the following question. Figure 9.2.2
-Figure 9.2.2 shows three indifference curves for Brenda.Which one of the following is not true?
A)Brenda would be equally happy consuming at either point B or point C.
B)Brenda prefers consuming at point B to consuming at point A.
C)Brenda prefers consuming at point D to consuming at either point B or point C.
D)The marginal rate of substitution is higher at point C than at point B.
E)Brenda prefers consuming at point D to consuming at point A.

Question

Use the figure below to answer the following question.  Figure 9.2.2
-Figure 9.2.2 shows three indifference curves for Brenda.Which one of the following is not true?
A)Brenda would be equally happy consuming at either point B or point C. 
B)Brenda prefers consuming at point B to consuming at point A. 
C)Brenda prefers consuming at point D to consuming at either point B or point C. 
D)The marginal rate of substitution is higher at point C than at point B. 
E)Brenda prefers consuming at point D to consuming at point A.

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) is the slope of the indifference curve, and it measures the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility. The MRS is higher when the indifference curve is steeper, and in this case, it is steeper at point B than at point C. Therefore, the statement in choice D is not true. Choices A, B, and E are true based on the assumption that Brenda prefers more to less of both goods. Choice C is also true based on the assumption that Brenda prefers consuming more of a good to less of it.

Use the Figure Below to Answer the Following Question