If the slope of the budget line is steeper than the slope of the indifference curve, and X is on the horizontal axis:
A. the consumer is willing to give up more of good X to get an additional unit of good Y than is necessary under the current market prices.
B. MRS = ?PX/PY.
C. MRS > PX/PY.
D. the consumer is willing to give up more of good Y to get an additional unit of good X than is necessary under the current market prices.
Answer: A
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