Suppose at the Consumer's Current Consumption Bundle the Marginal Rate

question 72

Multiple Choice

Suppose at the consumer's current consumption bundle the marginal rate of substitution of cheese for wine is ½ bottle of wine per pound of cheese. The price of one pound of cheese is $6, and the price of a bottle of wine is $10. The consumer should increase his consumption of

• A) cheese, decrease his consumption of wine, and move to a lower indifference curve.
• B) cheese, decrease his consumption of wine, and move to a higher indifference curve.
• C) wine, decrease consumption of cheese, and move to a higher indifference curve.
• D) cheese, decrease consumption of wine, and remain on the same indifference curve.

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Definitions:

Business Ethics

Standards of conduct and moral values regarding right and wrong actions in the work environment.

Business Person

A business person is an individual engaged in activities related to the creation, management, or operation of a business entity, aiming for profit and growth.

Loyalty

The commitment of a customer, employee, or other stakeholder to a company, brand, or product.

Social Responsibility

The practice of businesses making decisions and taking actions that positively impact society and the environment, beyond their financial obligations.