icon

Usetutoringspotscode to get 8% OFF on your first order!

Hos do indifference curves relate to substitute goods?

Indifference curve of the substitutes are sloping downward with the constant Marginal Rate of Substitution.

The Indifference curve of the substitutes are downward sloping with constant Marginal Rate of Substitution ( i.e the amount of units sacrificed for a commodity “say X” to get an additional unit of another commodity “say Y” is always same/constant).

NOTE: The shape of the normal indifference curve is bowed inwards towards origin and have diminishing Marginal Rate of Substitution.


You can leave a response, or trackback from your own site.

Leave a Reply

Powered by WordPress | Designed by: Premium WordPress Themes | Thanks to Themes Gallery, Bromoney and Wordpress Themes