After Learning About Indifference Curves, Sandy Realizes That Her Marginal

question 9

Multiple Choice

After learning about indifference curves, Sandy realizes that her marginal rate of substitution of grapes for cheese is 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.

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