The Marginal Rate of Substitution

question 84

Multiple Choice

The marginal rate of substitution

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

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