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Cher's Marginal Rate of Substitution of Necklaces (N) for Earrings

Question 20

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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.

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