As an Individual Moves Northwest Along His or Her Indifference

question 2

Multiple Choice

As an individual moves northwest along his or her indifference curve substituting more and more Y for X,his or her MRS of X for Y

• A) increases.
• B) decreases.
• C) stays the same.
• D) changes in a way that cannot be determined.

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Definitions:

Identified

Singled out or recognized from among others.

Existing

Currently present or in existence.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid over a specified period.

Entrusts

To give someone the responsibility to take care of something or act on one's behalf.