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The Price of One Good Changes and Sue Is Now

Question 84

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

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