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After Learning About Indifference Curves, Sandy Realizes That Her Marginal

Question 9

Multiple Choice

After learning about indifference curves, Sandy realizes that her marginal rate of substitution of grapes for cheese is 2. Since the price of cheese is $3 and the price of grapes is $1, Sandy:


A) should buy more grapes and less cheese.
B) should buy more cheese and fewer grapes.
C) is maximizing her utility.
D) is on her highest possible indifference curve.

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