Question

Diminishing MRS means:
(a) Consumer wants to give up lesser units of Y in exchange for good X
(b) Consumer wants to give up more units of Y in exchange for good X
(C) Consumer wants to give up same units of Y in exchange for good X
(d) None of the above​

Answer 1

Answer:

Consumer wants to give up same units of Y in exchange for hood X

Answer 2

Answer:

OPTION A: Consumer wants to give up lesser units of Y in exchange for good X

Explanation:

Diminishing MRS implies that for every additional unit of good 1, the consumer is willing to give up less and less amount of good 2.

Here Good 1 is X and Good 2 is Y. Therefore, rephrased, the sentence is:

Diminishing MRS implies that for every additional unit of good x, the consumer is willing to give up less and less amount of good y.

Therefore, OPTION A is the answer