With good X on the horizontal axis and good Y on the vertical axis, indifference curves are bowed inward. Moving from a bundle with plenty of X to one with plenty of Y, what happens to the marginal rate of substitution of Y for X (the slope of the indifference curve)?
Correct answer B. It rises
Explanation
On a convex indifference curve the slope is flat where X is plentiful and steep where Y is plentiful. Moving up the curve towards abundant Y, the consumer values X more, so the MRS rises.
Answer checked How we write and check questions
Discussion