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Intuitively,the Marginal Rate of Substitution for X with Y Tells

Question 62

Multiple Choice

Intuitively,the marginal rate of substitution for X with Y tells us:


A) how much Y a consumer needs to compensate them for a one-unit decrease in X.
B) how much X must be taken away from a consumer to compensate them for a one-unit increase in Y.
C) how much X a consumer needs to compensate them for a one-unit decrease in Y.
D) how much more Y the consumer will buy if the price of Y increases by $1.

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