Partial information on three baskets containing goods A and B is given in the table below. The marginal rate of substitution of B for A, (MRSBA), at Basket 2 is also provided.
| Basket | Units of A | Units of B | MRSBA |
| 1 | ? | 30 | |
| 2 | 50 | 35 | 4.0 |
| 3 | 40 | 40 |
A consumer’s indifference curves are strictly convex and he claims that he is indifferent between Baskets 2 and 3. If he is also indifferent between Baskets 1 and 3, the number of units of A in basket 1 is most likely:
C is correct. Because the consumer is indifferent between all three baskets, they must all fall on the same indifference curve. The MRSBA at Basket 2 is 4,
meaning that the slope of the indifference curve at that point is –4, hence ∆A/∆B = –4 =