Effect of Relative Abundance on Indifference Curve Steepness and MRS
The steepness of an indifference curve, which reflects the Marginal Rate of Substitution (MRS), changes based on the relative abundance of the two goods. As an individual moves to the right along the curve, acquiring more of the good on the horizontal axis (e.g., free time), the curve becomes flatter. This indicates a lower MRS because the person is less willing to sacrifice the other, now relatively scarcer, good for an additional unit of the abundant one. This unwillingness stems from the diminishing marginal utility of the good that has become more plentiful.
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