Figure 5.3b: Constant MRS at a Given Level of Free Time
Figure 5.3b is a diagram that illustrates a key property of Angela's preferences: her Marginal Rate of Substitution (MRS) depends only on her amount of free time, not on the quantity of grain she has. This is demonstrated by showing that the tangents to her indifference curves are parallel at any given level of free time (e.g., at 18 hours). The identical slope of these tangents confirms that her willingness to trade grain for an additional hour of free time remains constant, regardless of her grain consumption.
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The Economy 2.0 Microeconomics @ CORE Econ
Ch.5 The rules of the game: Who gets what and why - The Economy 2.0 Microeconomics @ CORE Econ
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Figure 5.3b: Constant MRS at a Given Level of Free Time
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Figure 5.3b: Constant MRS at a Given Level of Free Time