If good X is measured on the horizontal axis and good Y is measured on the vertical axis, what is a consumer's marginal rate of substitution between good X and good Y ?

Question

If good  X  is measured on the horizontal axis and good  Y  is measured on the vertical axis, what is a consumer's marginal rate of substitution between good  X  and good  Y ?

Accepted Answer

It is the rate at which a consumer will give up good  Y  to obtain an additional unit of good  X  while remaining indifferent.

Answer

It is the relative price of good  Y  in terms of good  X .

Answer

It is the rate at which a consumer will give up good  X  to obtain an additional unit of good Y while remaining indifferent.

Answer

It is equal to the magnitude of the slope of the budget line.

Answer

It is the relative price of good  X  in terms of good  Y .

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If good X is measured on the horizontal axis and good Y is measured on the v...

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