5. Refer to Figure 1. At any consumption bundle with the quantity of good X exceeding thequantity of good Y (that is, a bundle located below the 45 degree line, like point A), Alvin'smarginal rate of substitution of good X for good Y is:Good YFigure 145°Good X(a) diminishing.(b) positive.(c) constant and positive.(d) zero(e) There is not enough information to answer this question.

Marginal rate of substitution will be computed between two items placed on an indifference curve,…

5. Refer to Figure 1. At any consumption bundle with the quantity of good X exceeding th quantity of good Y (that is, a bundle located below the 45 degree line, like point A), Alvin marginal rate of substitution of good X for good Y is: Good Y A Figure 1 45° Good X

5. Refer to Figure 1. At any consumption bundle with the quantity of good X exceeding th quantity of good Y (that is, a bundle located below the 45 degree line, like point A), Alvin marginal rate of substitution of good X for good Y is: Good Y A Figure 1 45° Good X

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

5. Refer to Figure 1. At any consumption bundle with the quantity of good X exceeding the
quantity of good Y (that is, a bundle located below the 45 degree line, like point A), Alvin's
marginal rate of substitution of good X for good Y is:
Good Y
Figure 1
45°
Good X
(a) diminishing.
(b) positive.
(c) constant and positive.
(d) zero
(e) There is not enough information to answer this question.

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