Multiple Choice
Suppose at the consumer's current consumption bundle the marginal rate of substitution of cheese for wine is ½ bottle of wine per pound of cheese. The price of one pound of cheese is $6, and the price of a bottle of wine is $10. The consumer should increase his consumption of
A) cheese, decrease his consumption of wine, and move to a lower indifference curve.
B) cheese, decrease his consumption of wine, and move to a higher indifference curve.
C) wine, decrease consumption of cheese, and move to a higher indifference curve.
D) cheese, decrease consumption of wine, and remain on the same indifference curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: Explain the relationship between the budget constraint
Q8: Suppose that you have $100 today and
Q47: A consumer's indifference curves are right angles
Q74: The following diagram shows a budget constraint
Q85: For Meg, the substitution effect of an
Q96: The indifference curves for perfect substitutes are
Q184: A consumer is currently spending all of
Q204: The theory of consumer choice<br>A)underlies the concept
Q399: Suppose that for Emily, DVDs and trips
Q546: Figure 21-5<br>(a)<br>(b) <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-5 (a)