Detail

8. Which of the following is true about the Marginal Rate of Substitution (MRS) between X and Y?

The Marginal Rate of Substitution between X and Y must be the same at points A and B. Both of these consumption bundles represent choices in which our consumer is maximizing utility. In each case the associated indifference curve is tangent to the budget constraint, and since the two budget constraints have the same slope the MRSs must be equal at the two points.