Q1318
Along an indifference curve, if the marginal rate of substitution is 3, then the consumer is willing to
A.
Pay for one unit of the good measured along the Y-axis
B.
Given up one unit of the good measured along the Y-axis for three units of the good measured along the X-axis
C.
Given up three units of the good measured along the Y-axis for one unit of income, i.e., Rs. 1 of income
D.
Given up three units of the good measured along the Y-axis for one unit of the good measured along the X-axis
AnswerAnswer: Option D
Solution
Answer: Option D
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