Question: Good Evening! Can you explain the answer to this question for me? If a consumer's marginal rate of substitution of good X for good Y

Good Evening!

Can you explain the answer to this question for me?

If a consumer's marginal rate of substitution of good X for good Y (MRSxy) 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

Thanks!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!