Alvin's Preferences for Good X and Good Y Are Shown

question 35

Multiple Choice

Alvin's preferences for good X and good Y are shown in the diagram below. Figure 3.1
-Refer to Figure 3.1. Which of the following is true concerning Alvin's marginal rate of substitution?

• A) It is diminishing.
• B) It is positive but varies along the indifference curve.
• C) It is constant.
• D) It is zero.

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