In the diagram above, the marginal rate of substitution of X for Y, for a movement from S to T is

  • A 13:3
  • B 1:5
  • C 18:4
  • D 5:1
jamb 2002economics

The correct answer is D. 5:1

To produce 18 units of Y, at point S, 3 units of X was produced at the same point S. A movement along the production chart from point S to T, the firm gave up 5 units of Y to produce 4 units of X. This means that the firm gave up 5 units of product Y to produce 1 additional unit of X.

The ratio of substitution is 5:1

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