Suppose at the Current Consumption Bundle, the Marginal Rate of Substitution

question 77

Multiple Choice

Suppose at the current consumption bundle, the marginal rate of substitution of pizza for pepsi is 4 litres of pepsi for every one pizza.If we took four litres of pepsi away from our consumer and gave them one extra pizza, which of the following statements would be correct?

• A)the consumer would be on a higher indifference curve
• B)the consumer would be on a lower indifference curve
• C)the consumer's marginal rate of substitution of pepsi for pizza would rise
• D)the consumer's marginal rate of substitution of pepsi for pizza would fall

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