When Two Goods Are Perfect Substitutes, the Marginal Rate of Substitution

question 512

Multiple Choice

When two goods are perfect substitutes, the marginal rate of substitution

• A)is constant along the indifference curve.
• B)decreases as the scarcity of one good increases.
• C)increases as the scarcity of one good increases.
• D)changes to reflect the consumer's changing preferences for the goods.

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Definitions:

Blastopore

The initial opening that develops during early embryonic development in animals, leading to the formation of the digestive tract.

Deuterostomes

A grouping of animals characterized by their embryonic development; during the formation of the mouth and anus, the anus forms before the mouth.

Protostomes

A group of animals within the animal kingdom that develop the mouth before the anus during embryonic development, as part of the blastopore’s fate.

Spiral Cleavage

A type of early embryonic development found in some invertebrates, where cells divide at oblique angles to each other.