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Commerce · Q1168

Economics

Graduate and Post Graduate · Commerce · question 1168

Q1168

Moving along an indifference curve, if a consumer requires a small amount of the good measured along the Y-axis to make up one unit less of the good measured on the X-axis, then

A.
The marginal rate of substitution is high and the indifference curve is steep
B.
Total utility is increasing
C.
The marginal rate of substitution is high and the indifference curve is shallow
D.
The marginal rate of substitution is low and the indifference curve is shallow
Answer

Answer: Option D

Solution

Answer: Option D
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