View the step-by-step solution to:

Question

When you graphically plot indifference curves, they are convex to the origin, O. Suppose you are showing apples on

horizontal axis and oranges on vertical axis, what happens to marginal rate of substitution of apples for oranges when you substitute apples for oranges by buying more units of apples by reducing the units of oranges?

Top Answer

View the full answer
2019-09-24_12-13-49_656.jpg

Oranges
C
Apples
MRS as we go from A to B is
greater than MRS from B to C.

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question