MRS of X for Y refers to the amount of Y the consumer is willing to give up in order to gain one additional unit of X (and still remain in the same indifference curve!) Exercise 1 Draw the indifference curve using the data in the table at the left. Calculate and check that MRS mentioned in the table are correct. Is the MRSxy a decreasing function in X?

/in /by

MRS of X for Y refers to the amount of Y the consumer is willing to
give up in order to gain one additional unit of X (and still remain in
the same indifference curve!)

Exercise 1

Draw the indifference curve using the data in the table at the left.

Calculate and check that MRS mentioned in the table are correct.

Is the MRSxy a decreasing function in X?

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