Multiple Choice
Cher's marginal rate of substitution of necklaces (N) for earrings (E) is 5 (MRSEN = 5) . This information implies that:
A) Cher is willing to trade away five necklaces for one more pair of earrings, holding her utility constant.
B) Cher will move to a higher indifference curve if she trades away five necklaces for one more pair of earrings.
C) Cher should own five times as many necklaces as pairs of earrings.
D) the slope of the indifference curve is 5 and thus upward sloping.
Correct Answer:

Verified
Correct Answer:
Verified
Q15: Use the following to answer questions 38-40:<br>Figure
Q16: Use the following to answer questions 21-22:<br>Figure
Q17: The utility function for Morris is U
Q18: Use the following to answer questions 21-22:<br>Figure
Q19: The equation for the marginal rate
Q21: Suppose that the marginal utility of good
Q23: Alice's utility function over toys (T) and
Q24: Use the following to answer question:<br>Figure 4.7
Q71: Joaquim has new babies at home, so
Q85: The utility function for a consumer is