Consumers indifference curve

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Reference no: EM13819169

The following questions refer to the following graph of a consumer's indifference curve.

Y axis 0,10, 20, 30, 40

X axis 0, 10, 20, 30, 40

Point A set at 10x and 30y

Point C sets at 20 x and 15y

Point B set at 30x and 10y

Questions a) What is the consumer's marginal rate of substitution between points A and C?______

Moving between these points, the consumer is willing to give up_____units ofY for another X or _____units of X for another Y.

b) What is the consumer's marginal rate of substitution between points C and B?_____

Moving between these points the consumer is willing to give up _____ units of Y for another X or _____units of X for another Y.

c) At this point C the consumer's marginal rate of substitution at point is approximately ____. This means that the consumer is willing to substitute at a rate of _____ units of Y for one moew X or _____X for one Y.

Reference no: EM13819169

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