Suppose at the Consumer's Current Consumption Bundle the Marginal Rate

question 45

Multiple Choice

Suppose at the consumer's current consumption bundle the marginal rate of substitution of cheese for wine is 1/2 bottle of wine per pound of cheese.The price of one pound of cheese is $6 and the price of a bottle of wine is $10.The consumer should

• A)increase consumption of cheese and decrease consumption of wine, and move to a lower indifference curve.
• B)increase consumption of cheese and decrease consumption of wine, and move to a higher indifference curve.
• C)increase consumption of wine and decrease consumption of cheese, and move to a higher indifference curve.
• D)increase consumption of cheese and decrease consumption of wine, and remain on the same indifference curve.

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Definitions:

Forced

An action taken or situation imposed upon an individual without their consent or choice.

Mental Health Treatment

Intervention designed to treat emotional, psychological, and behavioral disorders to improve an individual’s mental well-being and functioning.

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A legal principle that seeks to protect individuals from unlawful detention, allowing detainees to challenge the legality of their detention.

Psychotropic Medications

Drugs that mainly affect the brain and reduce many symptoms of mental dysfunction.