Economics Mcqs
Q Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?
  • A A. Rises
  • B B. Stays the same
  • C C. Could rise or fall depending on the relative prices of the two goods.
  • D D. Falls
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