Question

WhathappenstoMRSwhenconsumermovesdownwardsalong
theindifferencecurve?Givereasonsforyouranswer.

Answer 1

Answer:

MRs will be decreased.

Explanation:

Usually, marginal substitution is diminishing, meaning a consumer chooses the substitute in place of another good rather than simultaneously consuming more. The law of diminishing marginal rates of substitution states that MRS decreases as one moves down a standard convex-shaped curve, which is the indifference curve.