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Question
If Marginal Rate of Substitution is constant throughout, the Indifference curve will be ______.
(choose the correct alternative)
Options
Parallel to the (x)-axis
Downward sloping concave
Downward sloping convex
Downward sloping straight line
MCQ
Fill in the Blanks
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Solution
If Marginal Rate of Substitution is constant throughout, the Indifference curve will be Downward sloping straight line.
Explanation:
A constant MRS means the rate of exchange between the goods stays unchanged along the curve. This gives the indifference curve a constant slope, so it is a straight line.
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