Question

Explain the following condition:
Movement along the same indifference curve.

Answer 1

The following conditions are explained below:
Movement along the same indifference curve: As we move down along the Indifference curve to the right, the slope of IC (MRS) decreases. This is because as the consumer consumes more and more of one good, the marginal utility of the good falls. On the other hand, the marginal utility of the good which is sacrificed rises. In other words, the consumer is willing to sacrifice less and less for each additional unit of the other good consumed. Thus, as we move down the IC, MRS diminishes. 

In the above figure, IC is the Indifference Curve.
At point A,
`"MRS"_"xy" = ("AD")/("DB")`
At point B,
`"MRS"_"xy" = ("BE")/("EC")`
`("BE")/("EC") < ("AD")/("DB")`
MRS at B < MRS at A, so MRS has fallen. 

Answer 2

The following conditions are explained below :

Movement along the same indifference curve: As we move down along the Indifference curve to the right, the slope of IC (MRS) decreases. This is because as the consumer consumes more and more of one good, the marginal utility of the good falls. On the other hand, the marginal utility of the good which is sacrificed rises. In other words, the consumer is willing to sacrifice less and less for each additional unit of the other good consumed. Thus, as we move down the IC, MRS diminishes. 

In the above figure, IC is the Indifference Curve.

At point A,

`"MRS"_"xy" = ("AD")/("DB")`

At point B,

`"MRS"_"xy" = ("BE")/("EC")`

`("BE")/("EC") < ("AD")/("DB")`

MRS at B < MRS at A, so MRS has fallen.