Which One of the Following Statements Is False

question 58

Multiple Choice

Which one of the following statements is false?

• A)If the indifference curve is steep, the marginal rate of substitution is high.
• B)A low marginal rate of substitution implies a flat indifference curve.
• C)A flat indifference curve implies a consumer must receive a large amount of good X to compensate for a small decrease in good Y.
• D)A high marginal rate of substitution implies a consumer must receive a large amount of good X to compensate for a small decrease in good Y.
• E)A high marginal rate of substitution implies a consumer must receive a small amount of good X to compensate for a large decrease in good Y.

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