As we consume more of a commodity,a(n)______________ marginal rate of substitution in consumption is reflected in a ________ community indifference curve.

Question

Quizplus · Accepted Answer

As we consume more of a commodity, the marginal rate of substitution in consumption decreases, meaning we are willing to give up less of one good to obtain additional units of the other good. This is reflected in a declining community indifference curve. The curve is convex because of the principle of diminishing marginal rate of substitution.

As We Consume More of a Commodity,a(n)______________ Marginal Rate of Substitution