Consumption at points on a steeper part of the indifference curve will reflect a higher marginal rate of substitution than consumption points on a flatter part of the indifference curve.

Question

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The marginal rate of substitution (MRS) measures the rate at which a consumer is willing to trade one good for another while remaining on the same level of utility. On a steeper part of the indifference curve, the MRS is higher because the consumer is willing to give up more of one good to obtain an additional unit of the other good. This is due to the diminishing marginal utility of the good being given up and the increasing marginal utility of the good being received. Therefore, consumption at points on a steeper part of the indifference curve reflects a higher MRS than consumption points on a flatter part of the indifference curve.

Consumption at Points on a Steeper Part of the Indifference