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Which One of the Following Statements Is False

Question 58

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 flat indifference curve.
C) A 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 high marginal rate of substitution implies a consumer must receive a small amount of good X to compensate for a large decrease in good Y.

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