Question

If the MRSxy for individual A exceeds the MRSxy for individual B, it is possible for individual A to gain by giving
up
A.
we cannot sayvwithout additional information.
B.
either Xor Y,
C .Yin exchange for more X from B
d. X in exchange for more Y from B,​

Answer 1

Answer:

I think option A is right

we cannot say without additional information

Answer 2

(d) X in exchange for more Y from B

Explanation:

The Marginal Rate of Substitution (MRSxy) is the rate at which a consumer is prepared to substitute a specific number of units of item X for one additional unit of good Y of comparable utility.

With respect to two commodities, an indifference curve (IC) is a graph that shows which combinations of the two commodities leave the consumer equally well off or equally satisfied—hence indifferent—in owning any combination on the curve.

MRSxy is slope of the IC.

$MRSxy =- \frac{MUx}{MUy}$

Given: A's MRSxy > B's MRSxy

This will imply that: A's MUx > B's MUx

A will consume more of commodity X and this will in turn MUx decrease and make MRSxy of A = MRSxy of B