The property of diminishing marginal rate of substitution follows from the property that the indifference curves are
A) downward sloping.
B) upward sloping.
C) bowed in toward the origin.
D) bowed out from the origin.
E) negatively sloped.

Question

Quizplus · Accepted Answer

The property of diminishing marginal rate of substitution occurs when the indifference curves are bowed in toward the origin. This means that as we move along the curve, we have to give up more and more of one good in order to get an extra unit of the other good.

The Property of Diminishing Marginal Rate of Substitution Follows from the Property