As one moves down a typical indifference curve,how does the marginal rate of substitution change
A)It increases.
B)It decreases.
C)It is constant.
D)It switches from positive to negative.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) measures the rate at which a consumer is willing to give up one good for an additional unit of another good while maintaining the same level of utility. As one moves down a typical indifference curve, the consumer becomes less willing to give up the first good for an additional unit of the other good due to the law of diminishing marginal utility. Therefore, the MRS decreases along the indifference curve.

As One Moves Down a Typical Indifference Curve,how Does the Marginal