Which of the following statements is true with respect to the MRS of X for Y?
A)It is given by the absolute slope of the indifference curve
B)declines as the nation moves down an indifference curve
C)rises as the nation moves up an indifference curve
D)all of the above

Question

Quizplus · Accepted Answer

The Marginal Rate of Substitution (MRS) of X for Y is indeed given by the absolute slope of the indifference curve, and it typically declines as one moves down an indifference curve due to diminishing marginal utility. As one moves up an indifference curve, the MRS increases because the consumer is willing to give up more of Y to obtain additional units of X, reflecting the increasing relative value of X.

Which of the Following Statements Is True with Respect to the MRS