Solved

If the Slope of the Indifference Curve Is Steeper Than

Question 10

Multiple Choice

If the slope of the indifference curve is steeper than the slope of the budget line,and X is on the horizontal axis:


A) the consumer is willing to give up more of good Y to get an additional unit of good X than is necessary under the current market prices.
B) MRS < PX /PY.
C) MRS < −PX /PY.
D) the consumer is willing to give up more of good X to get an additional unit of good Y than is necessary under the current market prices.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions