Economics · Microeconomics

Identify the correct statement(s) regarding the Marginal Rate of Substitution (MRSxy): 1. It measures the amount of good Y a consumer is willing to give up to obtain one extra unit of good X. 2. Indifference curves are concave to the origin when there is an increasing MRS. 3. Under standard convex consumer preferences, MRS diminishes as we move down along an indifference curve. 4. MRS increases as a consumer moves down along a standard convex indifference curve.