Post Utme Igbinedion University 2023 Economics Question 15

Practice objective / multiple choice question 15 from the 2023 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2023 Economics Objective / Multiple Choice
Question 15 POST_UTME_IGBINEDION_UNIVERSITY • 2023 • ECONOMICS • objective
Post Utme Igbinedion University 2023 Economics Question 15 diagram

A consumer is faced with the following budget constraint: 2x + 3y = 12. If the consumer's indifference curve is downward sloping and convex to the origin, what is the implication for the consumer's marginal rate of substitution (MRS)?

Answer Options

A. The MRS is cons\tant along the indifference curve.
B. The MRS increases as the consumer moves along the indifference curve.
Correct Answer C. The MRS decreases as the consumer moves along the indifference curve.
D. The MRS is zero at the point of \tangency with the budget constraint.
Correct Answer
C
Correct Option:
The MRS decreases as the consumer moves along the indifference curve.

About This Question

This is Post Utme Igbinedion University 2023 Economics Question 15. It is one of the objective questions from the 2023 Post Utme Igbinedion University Economics examination.

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