What does decreasing MRS indicates? – InterviewSolution

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1.	What does decreasing MRS indicates?
Answer» Explanation: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.

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