When two goods are perfect substitutes of each other then:

CA Foundation · Business Economics · MTP · September 2026
When two goods are perfect substitutes of each other then:
(A) A. MRS is falling
(B) B. MRS is rising
(C) C. MRS is constant
(D) D. None of the above

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. MRS is constant

Topics: Theory of Demand and Supply

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