A constant marginal rate of substitution between two goods implies that they are
A) perfect complements.
B) perfect substitutes.
C) independent goods.
D) unattainable.

Question

Quizplus · Accepted Answer

A constant marginal rate of substitution means that individuals are willing to trade a constant amount of one good for another good, indicating that these goods are perfect substitutes.

A Constant Marginal Rate of Substitution Between Two Goods Implies