When Indifference Curves Are Bowed Inward, the Marginal Rate of Substitution

question 545

Multiple Choice

When indifference curves are bowed inward, the marginal rate of substitution is

• A)the same at all points along an indifference curve.
• B)increasing as the consumer moves to the right along an indifference curve.
• C)decreasing as the consumer moves to the right along an indifference curve.
• D)constant.

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Definitions:

Orienting Reflex

The instinctual reaction of an organism to a novel stimulus, often involving attention redirection towards the source of the stimulus.

Stimulus

Any event or situation that evokes a response or reaction from an organism or system.

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