Site navigation

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…

Choose your answer

In case of indifference curve of two goods X and Y, as consumption of X increases:
Select one answer
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.

Practice for these exams

  • UGC NET Economics

Related question papers

Related exam syllabi

Related questions in this topic