Multiple Choice
Which one of the following statements is false?
A) If the indifference curve is steep,the marginal rate of substitution is high.
B) A low marginal rate of substitution implies a relatively flat indifference curve.
C) A relatively flat indifference curve implies a consumer must receive a large amount of good X to compensate for a small decrease in good Y.
D) A high marginal rate of substitution implies a consumer must receive a large amount of good X to compensate for a small decrease in good Y.
E) A consumer's marginal rate of substitution decreases as she moves down along her indifference curve.
Correct Answer:

Verified
Correct Answer:
Verified
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