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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