An Indifference Curve Diagram Has Movies on the Vertical Axis

question 373

Multiple Choice

An indifference curve diagram has movies on the vertical axis and sodas on the horizontal. As the consumption of sodas increases and movies decreases (moving southeast along an indifference curve) the marginal rate of substitution of sodas for movies

• A) rises.
• B) falls.
• C) does not change.
• D) probably changes, but more information is needed to determine if it rises or falls.

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Definitions:

System of Equations

A set of two or more equations that share two or more unknowns.

Coefficient

A numerical or constant factor before and multiplying the variable in an algebraic expression.

System of Equations

A set of two or more equations with the same variables, which are solved simultaneously to find their common solution.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.