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प्रश्न
If Marginal Rate of Substitution is constant throughout, the Indifference curve will be :(choose the correct alternative)
a. Parallel to the x-axis.
b. Downward sloping concave.
c. Downward sloping convex.
d. Downward sloping straight line.
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उत्तर
Downward sloping straight line.
Assume that the marginal rate of substitution remains constant and the indifference curve would be a straight line sloping downward because of perfect substitution of goods. For example, Bru coffee is a perfect substitute for Nescafe coffee. Here, the consumer’s satisfaction would remain the same in the consumption of both Bru coffee and Nescafe coffee.
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