Use the Figure Below to Answer the Following Question

question 17

Multiple Choice

Use the figure below to answer the following question.

Figure 9.2.4
-Refer to Figure 9.2.4. Rashid buys only books and albums. The figure shows his preferences. Rashid's indifference curves ________ display diminishing marginal rate of substitution because ________.

• A)do; Rashid is indifferent between consuming 6 albums and 2 books and consuming 2 albums and 3 books
• B)do not; the magnitude of the slope of both indifference curves decreases as Rashid consumes more albums and fewer books
• C)do not; Rashid is indifferent between consuming 6 albums and 2 books and consuming 2 albums and 3 books
• D)do; the magnitude of the slope of both indifference curves decreases as Rashid consumes more albums and fewer books
• E)do; the price of an album decreases as Rashid increases the quantity he buys

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Definitions:

Still Photos

Photographs that capture a single moment in time, particularly in contrast to moving images.

Size Constancy

A perceptual process allowing a person to perceive an object as the same size regardless of its distance from the observer.

Optical Illusions

Visual perception phenomena where the information perceived by the eye and interpreted by the brain differs from the physical reality, often leading to misinterpretation.

Accurate Judgments

The ability to make conclusions or assessments that are correct and based on evidence or sound reasoning.