If a consumer's marginal rate of substitution of (operatorname{good} X) for (operatorname{good} Yleft(mathrm{MRS}_{X Y}ight)) is equal to
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If a consumer's marginal rate of substitution of \(\operatorname{good} X\) for \(\operatorname{good} Y\left(\mathrm{MRS}_{X Y}ight)\) is equal to 2 , then the:
A. consumer is willing to give up two units of \(X\) for one unit of \(Y\).
B. slope of a line tangent to the indifference curve at that point is 2 .
C. slope of a line tangent to the indifference curve at that point is -2 .
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Related Book For
Economics For Investment Decision Makers
ISBN: 9781118111963
1st Edition
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
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