Multiple Choice
Use the figure below to answer the following question.
Figure 9.2.4
-Refer to Figure 9.2.4. Rashid buys only books and albums. The figure shows his preferences. Rashid's indifference curves ________ display diminishing marginal rate of substitution because ________.
A) do; Rashid is indifferent between consuming 6 albums and 2 books and consuming 2 albums and 3 books
B) do not; the magnitude of the slope of both indifference curves decreases as Rashid consumes more albums and fewer books
C) do not; Rashid is indifferent between consuming 6 albums and 2 books and consuming 2 albums and 3 books
D) do; the magnitude of the slope of both indifference curves decreases as Rashid consumes more albums and fewer books
E) do; the price of an album decreases as Rashid increases the quantity he buys
Correct Answer:

Verified
Correct Answer:
Verified
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