The Marginal Rate of Substitution

question 344

Multiple Choice

The marginal rate of substitution

• A)may increase or decrease on a given indifference curve, depending on whether the substitution or the income effect is dominant.
• B)increases as one moves southeast along an indifference curve.
• C)is constant at all points on the budget line.
• D)declines as one moves southeast along an indifference curve.

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