Say I only consume two commodities x1 and x2 I like both x1

Say I only consume two commodities, x1 and x2. I like both x1 and x2 and I am never satiated. I am indifferent between bundles (7,6) and (8,4), but I prefer the bundle (9,2) to both of them. What is the most you can say about whether or not my preferences satisfy the Hypotheses of Diminishing Marginal Rate of Substitution? (HINT: drawing a diagram may help here)

A. my preferences satisfy increasing MRS

B. my preferences satisfy diminishing MRS

C. my preferences satisfy constant MRS

D. my preferences satisfy either increasing or constant MRS

E. my preferences satisfy either decreasing or constant MRS

F. it is not possible to determine the curvature of my indifference curves from the information given.

Solution

B). My preferences satisfy diminishing MRS.