If MRS_{x, y}is constant at 5, then which of the following is false? A) The slope of the indifference curve is positive. B) The goods are perfect substitutes. C) The indifference curves are linear. D) The slope of the indifference curve is negative.

Question

Quizplus · Accepted Answer

The marginal rate of substitution (MRS) being constant at 5 indicates that the goods are perfect substitutes, leading to linear indifference curves with a constant negative slope. Therefore, the slope of the indifference curve cannot be positive.

If MRSx, Y is Constant at 5, Then Which of the Following

If MRS_{x, Y}is Constant at 5, Then Which of the Following