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.

---

Definitions:

Grapefruits

A large, round citrus fruit with a rich, slightly bitter flavor, known for its health benefits and use in diets and cooking.

Indifference Curves

Curves representing combinations of two goods between which a consumer is indifferent, meaning any combination along the curve gives the same level of satisfaction.

Bundle

In economics, a combination of various goods and services that a consumer might consider purchasing.

Constants

Fixed values in mathematical equations or models that do not change under different conditions.