If Two Goods Are Both Desirable and Preferences Are Convex

question 9

Multiple Choice

If two goods are both desirable and preferences are convex, then

• A)there must be a kink in the indifference curves.
• B)indifference curves must be straight lines.
• C)if two bundles are indifferent, then an average of the two bundles is worse than either one.
• D)the marginal rate of substitution is constant along indifference curves.
• E)None of the above.

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