The Marginal Rate of Substitution

question 41

Multiple Choice

The marginal rate of substitution

• A)always has a positive algebraic value.
• B)is constant as one moves along a particular indifference curve.
• C)is the amount of one good the consumer is willing to give up in exchange for another so as to keep total satisfaction unchanged.
• D)is the amount of one good the consumer is willing to give up in exchange for another so as to keep total expenditure unchanged.
• E)is equal to the price ratio on the budget line.

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