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Up0
In econ module, reading 14, question 4
“4. If a consumer’s marginal rate of substitution of good X for good Y (MRSXY) is equal to 2, then the:
A. consumer is willing to give up 2 units of X for 1 unit of Y. B. slope of a line tangent to the indifference curve at that point is 2. C. slope of a line tangent to the indifference curve at that point is –2.”
Why is A not the correct answer? -
Up4
Its yet another example of economists being backwards. MRS(XY) = Delta(Y)/Delta(X) so is the number of units of good Y that they will give up for an additional unit of good X.
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