In case of indifference curve of two goods X and Y, as consumption of X increases:
For a conventional strictly convex indifference curve, diminishing marginal rate of substitution means that as X rises and Y falls, the consumer gives up progressively less…
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In case of indifference curve of two goods X and Y, as consumption of X increases:
Answer and explanation
Correct answer B
For a conventional strictly convex indifference curve, diminishing marginal rate of substitution means that as X rises and Y falls, the consumer gives up progressively less Y for another unit of X. Thus MRSXY decreases. Increases, remains the same, and initially increases then decreases are not the standard diminishing-MRS case.
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UGC NET Economics