Moving down the indifference curve, the marginal rate of substitution
A)diminishes.
B)depends on household income.
C)is highly volatile.
D)is rising.
E)is constant.

Name: Moving down the indifference curve, the marginal rate of substitution A)diminishes. B)depends on household income. C)is highly volatile. D)is rising. E)is constant.
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Question

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Moving down the indifference curve reflects a decrease in the willingness to substitute one good for another. As a result, the marginal rate of substitution diminishes.

Moving Down the Indifference Curve, the Marginal Rate of Substitution