If an indifference map for a consumer is made up of straight, negatively sloped lines, the marginal rate of substitution ________ as more of the good on the horizontal axis is consumed.
A) does not diminish
B) diminishes
C) increases
D) More information is needed to answer the question.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) remains constant when indifference curves are straight lines, indicating that the consumer is willing to substitute the goods at a constant rate.

If an Indifference Map for a Consumer Is Made Up