Good X Is Measured on the Horizontal Axis and Good

question 2

Multiple Choice

Good X is measured on the horizontal axis and good Y is measured on the vertical axis.The marginal rate of substitution is

• A)the relative price of good X in terms of good Y.
• B)the relative price of good Y in terms of good X.
• C)the rate at which a consumer will give up good Y to obtain an additional unit of good X while remaining indifferent.
• D)the rate at which a consumer will give up good X to obtain an additional unit of good Y while remaining indifferent.
• E)equal to the magnitude of the slope of the budget line.