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The Price of One Good Changes and Sue Is Now

Question 20

Multiple Choice

The price of one good changes and Sue is now at a point on her indifference curve where the marginal rate of substitution exceeds the relative price. Sue will now choose to buy _______ of the good that is measured on the _______.


A) more; x- axis
B) the same quantity; x- axis
C) more; y- axis
D) less; x- axis

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