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When Two Goods Are Perfect Substitutes, the Marginal Rate of Substitution

Question 512

Multiple Choice

When two goods are perfect substitutes, the marginal rate of substitution


A) is constant along the indifference curve.
B) decreases as the scarcity of one good increases.
C) increases as the scarcity of one good increases.
D) changes to reflect the consumer's changing preferences for the goods.

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