Because of the [...]—that MRSBW must diminish as he moves toward more bread and less wine.
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convexity assumption
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Open it Because of the convexity assumption—that MRS BW must diminish as he moves toward more bread and less wine—the MRS BW is continuously changing as he moves along his indifference curve.
Original toplevel document
3. UTILITY THEORY: MODELING PREFERENCES AND TASTES e. If, at some point, the slope of the indifference curve had value –2.5, it means that, starting at that particular bundle, our consumer would be willing to sacrifice wine to obtain bread at the rate of 2.5 ounces of wine per slice of bread. <span>Because of the convexity assumption—that MRS BW must diminish as he moves toward more bread and less wine—the MRS BW is continuously changing as he moves along his indifference curve.
EXAMPLE 2
Understanding the Marginal Rate of Substitution
Tom Warren currently has 50 blueberries and 20 peanuts. His marginal rate of substitution
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