As a consumer gives up some of good A to get more of good B, his or her marginal rate of substitution of good A for good B:
A)becomes infinite.
B)goes from negative to positive.
C)increases.
D)decreases.

Question

Quizplus · Accepted Answer

As a consumer gives up some of good A to get more of good B, the marginal rate of substitution of good A for good B increases. This is because the consumer is willing to give up more of good A to get an additional unit of good B, indicating that the marginal utility of good B is increasing relative to the marginal utility of good A.

As a Consumer Gives Up Some of Good a to Get