MRS is falling
MRS is rising
MRS is constant
None of the above
✅ The correct answer is C.
When two goods are perfect substitutes of each other, then MRS is constant. Two commodities are perfect substitutes for each other – In this case, the indifference curve is a straight line, where MRS is constant.
When two goods are perfect substitutes of each other, then MRS is constant. Two commodities are perfect substitutes for each other – In this case, the indifference curve is a straight line, where MRS is constant.