The principle of marginal rate of substitution states that the more chocolate Susan consumes in proportion to coffee, the coffee she is willing to substitute for another piece
Of chocolate.
A)diminishing; less
B)diminishing; more
C)increasing; less
D)increasing; more

Question

Quizplus · Accepted Answer

This is because the principle of diminishing marginal rate of substitution states that as a consumer increases their consumption of one good (chocolate in this case), they will become less willing to consume additional units of that good in exchange for another good (coffee in this case). So as Susan consumes more chocolate, she will be willing to substitute less coffee for each additional piece of chocolate.

The Principle of Marginal Rate of Substitution States That the More