As a consumer moves along an indifference curve and decreases consumption of the good on the x-axis, the consumer needs ________ of the good on the y-axis to give up an additional unit of the good on the x-axis.
A) less and less
B) more and more
C) none
D) a constant amount

Question

Quizplus · Accepted Answer

As the consumer decreases consumption of the good on the x-axis and moves along the indifference curve, the marginal rate of substitution (MRS) decreases. This means the consumer needs more and more of the good on the y-axis to give up an additional unit of the good on the x-axis. Thus, choice B is the correct answer.

As a Consumer Moves Along an Indifference Curve and Decreases