Shape of an Indifference Curve

Diminishing Marginal Rate of Substitution

Comparing Bundles and MRS Along a Vertical Line

Marginal Utility and the Marginal Rate of Substitution

Marginal Rate of Substitution as the Ratio of Marginal Utilities

Steeper Indifference Curve and Higher Marginal Rate of Substitution

MRS as a Derivative of a Utility Component Function

Angela's Optimal Choice (Point A) where MRS = MRT

Abundance, Marginal Utility, and MRS Along a Horizontal Line

Quasi-linear Preferences

Relationship between Relative Scarcity and the Marginal Rate of Substitution

An individual consumes only two goods: coffee (measured on the vertical axis) and bagels (measured on the horizontal axis). At their current consumption bundle, located on one of their indifference curves, the Marginal Rate of Substitution (MRS) is 3. Which of the following statements accurately interprets this value?

Relationship Between MRS and Indifference Curve Slope

Evaluating a Trade Offer Using Willingness to Substitute

For a consumer choosing between two goods, the Marginal Rate of Substitution (MRS) at any point along an indifference curve is equal to the mathematical slope of the curve at that same point.

Analyzing a Consumer's Willingness to Trade

Consider an individual's standard, convex indifference curve for two goods, with Good Y on the vertical axis and Good X on the horizontal axis. Bundle A is a point on this curve with a large quantity of Good Y and a small quantity of Good X. Bundle B is another point on the same curve with a small quantity of Good Y and a large quantity of Good X. How does the Marginal Rate of Substitution (MRS) of Good Y for Good X at Bundle A compare to the MRS at Bundle B?

Analyzing Preferences for Perfect Substitutes

Distinguishing Between Indifference Curve Slope and MRS

A consumer is analyzing their preferences for apples and bananas. They find that they are equally satisfied with two different combinations: Bundle A (10 apples, 4 bananas) and Bundle B (7 apples, 5 bananas). Assuming apples are on the vertical axis and bananas are on the horizontal axis, what is the approximate Marginal Rate of Substitution (MRS) of apples for bananas between these two points?

Evaluating Advice Based on the Marginal Rate of Substitution

MRS in Intertemporal Choice (MRS = 1 + ρ)

Shape of an Indifference Curve

Diminishing Marginal Rate of Substitution

An economist is mapping a consumer's preferences for two goods: coffee and croissants. The economist observes that two of the consumer's indifference curves intersect at a single point. Which fundamental assumption about preferences does this intersection directly violate?

Evaluating a Consumer's Preference Statement

Match each core assumption about consumer preferences to its primary implication for the properties of an indifference curve map.

Identifying Preference Inconsistencies

Evaluating the Realism of Preference Assumptions

A consumer reports the following preferences over bundles of goods: they are indifferent between Bundle X and Bundle Y, and also indifferent between Bundle Y and Bundle Z. However, when offered a direct choice between Bundle X and Bundle Z, they strictly prefer Bundle X. This set of preferences is logically consistent with the standard assumptions used to model consumer choice.

Consider a consumer's preferences for two goods, X and Y, represented by a set of indifference curves. Bundle A and Bundle B lie on the same indifference curve. Bundle C contains more of both Good X and Good Y than Bundle A. Based on the standard assumptions about consumer preferences, what can be concluded about the consumer's preference between Bundle B and Bundle C?

Analyzing a Consumer's Willingness to Trade

A consumer is choosing between bundles of two goods: Pizza Slices and Sodas. You are told that the consumer gets the same level of satisfaction from Bundle P (4 pizza slices, 2 sodas) as they do from Bundle Q (2 pizza slices, 5 sodas). Using the standard assumptions about consumer preferences, arrange the following three items in order from MOST preferred to LEAST preferred.

Evaluating a Flawed Indifference Curve

Diminishing Marginal Rate of Substitution

Abundance, Marginal Utility, and MRS Along a Horizontal Line

Diminishing Marginal Utility as the Rationale for Consumption Smoothing

Julia's Indifference Curve and Diminishing Marginal Returns to Consumption

Consumer Satisfaction at a Buffet

An individual's total satisfaction (measured in 'utils') from consuming successive cups of coffee on a particular morning is shown in the table below.

At which point does the principle of diminishing marginal utility first become evident?

Evaluating Progressive Taxation Policy

According to the principle of diminishing marginal utility, if a consumer continues to consume additional units of a good, their total satisfaction derived from that good will eventually start to decrease.

Weekend Activity Planning

A person is consuming slices of pizza one after another. Based on the principle of diminishing marginal utility, match each consumption stage with the corresponding description of the satisfaction (utility) gained.

Employee Reward Program Design

Water Rationing Policy Analysis

Video Game Monetization Strategy

A marketing team is analyzing consumer behavior for a new brand of gourmet cookies. Which of the following customer behaviors most clearly demonstrates the principle of diminishing marginal utility?

Diminishing Marginal Rate of Substitution