Multiple Choice
Use the following to answer questions:
-(Table: Food and Clothing Bundles) Look at the table Food and Clothing Bundles. Teddy enjoys consuming food and clothing. The table shows five bundles of food and clothing that all provide Teddy with the same amount of utility. If units of food were put on a horizontal axis, what would we know about the shape of Teddy's indifference curve?
A) It is horizontal.
B) It is upward-sloping, with a declining marginal rate of substitution.
C) It is downward-sloping, with a constant marginal rate of substitution.
D) It is downward-sloping, with a declining marginal rate of substitution.
Correct Answer:

Verified
Correct Answer:
Verified
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