Along a Given Indifference Curve, a Consumer Reduces the Quantity

question 37

Multiple Choice

Along a given indifference curve, a consumer reduces the quantity of one good in favor of more units of the other. In this situation

• A) the marginal rate of substitution falls.
• B) the marginal utility of the first rises and the marginal utility of the second good falls.
• C) total utility rises.
• D) both A and B are correct.

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Definitions:

Correlated Stimulus

A stimulus that is consistently linked with another, often leading to an expectation of the second when the first is presented.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

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A kitchen device used to open metal cans automatically using an electric motor.

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Specially formulated food designed to meet the nutritional needs of cats, considering their dietary requirements.