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Which one of the following is false regarding 'indifference curves' and 'marginal rate of substitution? Lütfen birini seçin
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Which one of the following is false regarding 'indifference curves' and 'marginal rate of substitution? Lütfen birini seçin . Indifference Curves generally possess negative slopes. b. MS indicates the role of trade-off between the two goods c. Steeper indifference curves correspond to higher MRS d. Indifference curves can not intersect e. Indifference curves that we higher un correspond to a lower blity. TUR acer Home sysh LOCE 0 P 0 7 Home 4 All Gr
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Which one of the following is false regarding "indifference curves' and 'marginal rate of substitution? cevaplanmadi Lütfen birini seçin erinden nmis a. Indifference curves can not intersect. b. MRS indicates the rate of trade-off between the two goods. c. Steeper indifference curves correspond to higher MRS. Jyu i?aretle d. Indifference curves that are higher up correspond to a lower utility e, indifference curves generally possess negative slopes.
Expert Solution
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e. Indifference that are higher up mean higher utility. Higher the indifference curve , higher is the level of satisfaction. A certain combination of two goods will bring more satisfaction to the consumer if he is on a higher indifference curve than on a lower one since the higher indifference curve will have more amount of one commodity or the other or both the commodities.
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Option D
Higher indifference curves represent a greater level of utility than lower ones. Higher indifference curves represent larger quantities of goods than lower indifference curves thus representing consumer's consumption of both goods is higher.
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