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Mika's Marginal Rate of Substitution of Apples (A) for Oranges

Question 37

Multiple Choice

Mika's marginal rate of substitution of apples (A) for oranges (O) is 5 (MRSAO = 5) . This information implies that:


A) Mika is willing to trade away five apples for one more orange, holding her utility constant.
B) Mika will move to a higher indifference curve if she trades away five apples for one more orange.
C) Mika should own five times as many apples as oranges.
D) the slope of the indifference curve is five and thus upward sloping.

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