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) both A and C
Correct Answer:

Verified
Correct Answer:
Verified
Q18: Sara's income is $12 a week.The price
Q21: If income decreases,the budget line<br>A)becomes steeper.<br>B)becomes flatter.<br>C)shifts
Q26: Which one of the following is true
Q31: Use the figure below to answer the
Q38: An indifference curve is<br>A)the boundary between what
Q42: The substitution effect is the effect of
Q44: If two goods are perfect substitutes,then their<br>A)indifference
Q50: Use the figure below to answer the
Q62: Junkfood Jill spends all of her income
Q78: Which one of the following statements is