June 2015

1:

When a consumer increases units of X - commodity by giving up some units of Y- commodity and even to attain the same level of satisfaction, the marginal rate of substitution, will be calculated by :

A.

Change in X - Commodity divided by change in Y - Commodity

B.

Change in X - Commodity divided by marginal utility of Y - Commodity

C.

Change in Y - Commodity divided by change in X - Commodity

D.

Change in Y - Commodity divided by marginal utility of X - Commodity

 

Answer : C

Explanation :

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Option: A

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