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