-Keith is indifferent between canned soup and fresh soup.In the figure above,Keith's indifference curves are represented by I1,I2,I3,and I4 curves.What is the marginal rate of transformation (MRT)of Keith's budget constraint?
A) MRT = -2
B) MRT = -1
C) MRT = -4
D) MRT = -0.5

Question

-Keith is indifferent between canned soup and fresh soup.In the figure above,Keith's indifference curves are represented by I1,I2,I3,and I4 curves.What is the marginal rate of transformation (MRT)of Keith's budget constraint?
A) MRT = -2 
B) MRT = -1 
C) MRT = -4 
D) MRT = -0.5

Quizplus · Accepted Answer

The marginal rate of transformation (MRT) is the slope of the budget constraint line, which can be determined by looking at the trade-off between the two goods (in this case, canned soup and fresh soup) that keeps the consumer on the same budget. Given that Keith is indifferent between canned soup and fresh soup, and without a specific figure to reference, the correct answer cannot be determined directly from the question. However, if the answer choices are considered, assuming a typical linear budget constraint and given the options provided, a common approach to determining the MRT is by understanding it represents the opportunity cost of one good in terms of the other. Without the figure, this explanation is based on the assumption that the correct answer is provided among the choices.

-Keith Is Indifferent Between Canned Soup and Fresh Soup