After Learning About Indifference Curves, Sandy Realizes That Her Marginal

question 397

Multiple Choice

After learning about indifference curves, Sandy realizes that her marginal rate of substitution of grapes for cheese is equal to 2.Since the price of cheese is $3 and the price of grapes is $1, Sandy:

• A)should buy more grapes and less cheese.
• B)should buy more cheese and fewer grapes.
• C)is maximizing her utility.
• D)is on her highest possible indifference curve.