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Which One of the Following Statements Is False

Question 70

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.

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