According to the Law of Diminishing Marginal Rate of Substitution

question 87

Multiple Choice

According to the law of diminishing marginal rate of substitution,

• A)as consumption of good A increases, other things constant, its marginal utility declines
• B)as consumption of good A increases, other things constant, one is willing to give up increasing amounts of good B to get another unit of good A
• C)as consumption of good A increases, other things constant, the amount of good B one is willing to give up to get another unit of good A falls
• D)the indifference curve's slope increases as more of the good on the horizontal axis is consumed
• E)indifference curves intersect when marginal utilities fall

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