need help with this question 9 of 10 5 complete This Test 10

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9 of 10 (5 complete) This Test: 10 pts po Alvin\'s preferences for good X and good Y are shown in the figure at right which assumption concerning preferences do Alvin\'s indifference curves violate? O A. Diminishing marginal rates of substitution O B. More is preferred to less O c. Completeness. O D. Transitivity of preferences Click to select your answer

Solution

The correct answer is A. These are perfect substitutes as we have linear indifference curves and so there is no diminishing MRS. The correct answer is A.

 need help with this question 9 of 10 (5 complete) This Test: 10 pts po Alvin\'s preferences for good X and good Y are shown in the figure at right which assump

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