What will be the slope of indifference curve if MRS is constant?

If the MRS is constant throughout all points on indifference curve then it will be depicted as a downward sloping straight line. The downward slope of indifference curve will depict that, to increase consumption of one good, consumer has to decrease consumption of other good.

What is constant on an indifference curve?

Definition: An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. In other words, point A gives as much utility as point B to the individual. The consumer will be satisfied at any point along the curve assuming that other things are constant.

What is the shape of indifference curves?

Indifference curves have a roughly similar shape in two ways: 1) they are downward sloping from left to right; 2) they are convex with respect to the origin. In other words, they are steeper on the left and flatter on the right.

Is MRS the slope of the indifference curve?

Essentially, MRS is the slope of the indifference curve at any single point along the curve. The law of diminishing marginal rates of substitution states that MRS decreases as one moves down a standard convex-shaped curve, which is the indifference curve.

What does diminishing MRS mean?

Usually, marginal substitution is diminishing, meaning a consumer chooses the substitute in place of another good, rather than simultaneously consuming more. The law of diminishing marginal rates of substitution states that MRS decreases as one moves down a standard convex-shaped curve, which is the indifference curve.

How do you find MRS?

To find the slope of a curve at a specific point, you use calculus. Take the first derivative of the equation for the indifference curve, then plug in the values of x1 and x2 for the point you are interested in. That will give you the MRS at that point.

Why is indifference curve L shaped?

An L shaped indifference curve represents that two goods are perfect complements of each other.

How does Mrs impact the shape of IC?

Answers. Ans: .. MARGINAL RATE of SUBSTITUTION (MRS) shows the slope of the INDIFFERENCE CURVE (IC). So, by seeing the slope of IC curve you can know the nature of MRS.