Multiple Choice
Which one of the following statements is true about the indifference curves for two goods that are close but not perfect substitutes?
A) The indifference curves are negatively-sloped straight lines.
B) The indifference curves are L-shaped.
C) The marginal rate of substitution is constant.
D) The marginal rate of substitution decreases as more of the good measured on the x-axis and less of the good measured on the y-axis are consumed.
E) The marginal rate of substitution is negative.
Correct Answer:

Verified
Correct Answer:
Verified
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