When a consumer moves from a lower to a higher indifference curve,the marginal rate of substitution automatically increases.

Question

Quizplus · Accepted Answer

When a consumer moves to a higher indifference curve, it typically indicates an increase in their level of satisfaction or utility from consuming a different combination of goods, not necessarily an increase in the marginal rate of substitution (MRS), which measures the rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility.

When a Consumer Moves from a Lower to a Higher