Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.If the marginal rate of good X in terms of good Y is large,then the indifference curve will be
A) convex.
B) concave.
C) steep.
D) flat.

Question

Goods X and Y

For the following questions, assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.

-Refer to Goods X and Y.If the marginal rate of good X in terms of good Y is large,then the indifference curve will be
A) convex.
B) concave.
C) steep.
D) flat.

Quizplus · Accepted Answer

When the marginal rate of substitution of good X for good Y is large, it means the consumer must give up a large amount of Y to get one more unit of X, indicating a steep indifference curve.