Multiple Choice
Along an indifference curve,if the marginal rate of substitution is 3,then the consumer is willing to
A) give up 1 unit of the good measured along the y-axis for 3 units of the good measured along the x-axis.
B) give up 3 units of the good measured along the y-axis for 1 unit of the good measured along the x-axis.
C) pay $3 for one unit of the good measured along the y-axis.
D) pay $3 for one unit of the good measured along the x-axis.
E) give up 3 units of the good measured along the y-axis for 1 unit of income, that is, $1 of income.
Correct Answer:

Verified
Correct Answer:
Verified
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