Use the graph below of a consumers indifference curve to ans

Use the graph below of a consumer’s indifference curve to answer the questions:

a. What is the MRS between A and B?

b. What is the MRS between B and C?

c. What is the MRS at B?

500 400 300 200 100 100 200 300 400 500 Quantity of X

1. MRS between A and B = Change in Quantity Y / Change in Quantity of X

MRS between A and B = 450 - 300 / 100 - 50

MRS between A and B = 3 / 1

It means a person needs to give up 3 units of A to get one unit of B

2. MRS between B and C = Change in Quantity Y / Change in Quantity of X

MRS between B and C = 300 - 100 / 300 - 100

MRS between B and C = 1 / 1

It means a person needs to give up 1 units of B to get one unit of C

3. MRS at B = 0