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Alvin's Preferences for Good X and Good Y Are Shown

Question 137

Multiple Choice

Alvin's preferences for good X and good Y are shown in the diagram below. Alvin's preferences for good X and good Y are shown in the diagram below.   Figure 3.2 -Refer to Figure 3.2. At any consumption bundle with the quantity of good X exceeding the quantity of good Y (that is, a bundle located below the 45 degree line, like point A, Alvin's marginal rate of substitution of good X for good Y is A)  diminishing. B)  positive. C)  constant and positive. D)  zero. Figure 3.2
-Refer to Figure 3.2. At any consumption bundle with the quantity of good X exceeding the quantity of good Y (that is, a bundle located below the 45 degree line, like point A, Alvin's marginal rate of substitution of good X for good Y is


A) diminishing.
B) positive.
C) constant and positive.
D) zero.

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