In the graph, what is the MRS of good 1 for good 2 when the consumer moves from A to B? An indifference curve through bundles A (2, 15), B (3, 10), C (5, 6) and D (10, 3), where the first number is good 1 and the second is good 2.

In the graph, what is the MRS of good 1…

In the graph, what is the MRS of good 1 for good 2 when the consumer moves from A to B?

Question 38

MediumOriginal question

In the graph, what is the MRS of good 1 for good 2 when the consumer moves from A to B?

An indifference curve through bundles A (2, 15), B (3, 10), C (5, 6) and D (10, 3), where the first number is good 1 and the second is good 2.

2 units of good 2 per unit of good 1Correct answerYour answer10 units of good 2 per unit of good 1Correct answerYour answer5 units of good 2 per unit of good 1Correct answerYour answer1 unit of good 2 per unit of good 1Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

From A (2, 15) to B (3, 10): good 1 rises by 1, good 2 falls by 5.
MRS = ΔY ÷ ΔX = 5 ÷ 1 = 5 units of good 2 per unit of good 1.

Concept: MRS from an indifference curve
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsIndifference curves and MRS

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Ten questions from Budget Line & Optimal Choice, at your own pace.

Practise this chapter →

Ten questions from Budget Line & Optimal Choice, at your own pace.

In the graph, what is the MRS of good 1 for good 2 when the consumer moves from A to B?

Question 38

Explanation