Chinto asked his teacher, "Why does the MRSXY diminishes". What do yo…

Because as consumption of X increases and Y decreases, utility of X decreases and that of Y increases. So consumer feels the inclination to sacrifice smaller and smaller amounts of Y in exchange for X.

Because as consumption of Y increases and X decreases, utility of Y decreases and that of X increases. So consumer feels the inclination to sacrifice smaller and smaller amounts of Y in exchange for X.

Because as consumption of X increases and Y decreases, utility of Y decreases and that of X increases. So consumer feels the inclination to sacrifice small and smaller amounts of Y in exchange for X.

Because as consumption of Y increases and X decreases, utility of Y increases and that of X decreases. So consumer feels the inclination to sacrifice small and smaller amounts of X in exchange for Y.