The property of diminishing marginal rate of substitution follows from the property that the indifference curve is
A) downward sloping.
B) upward sloping.
C) bowed in toward the origin.
D) bowed out from the origin.

Question

Quizplus · Accepted Answer

The diminishing marginal rate of substitution implies that as a consumer substitutes one good for another, the amount of the good given up decreases. This is represented by an indifference curve that is bowed in toward the origin.

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