Sheri Is Currently Purchasing 10 Units of a Normal Good

question 21

Multiple Choice

Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit diminishing marginal rate of substitution.Suppose there is a decrease in the market price of this good.Then

• A) both her utility and her consumer surplus will increase.
• B) her consumer surplus will increase, but her utility will remain the same.
• C) her utility will increase, but her consumer surplus will remain the same.
• D) her consumer surplus will increase, but the change in her utility is unknown without more information.

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