Multiple Choice
Candies are on the vertical axis and pretzels are on the horizontal axis.Both goods command a positive price in the market place.The indifference curves are shaped such that the marginal rate of substitution increases rather than decreases.At equilibrium,the consumer will:
A) consume both pretzels and candy in the ratio of their prices.
B) consume only pretzels or only candy.
C) consume both pretzels and candy in the ratio of their marginal utilities.
D) consume equal amounts of pretzels and candy.
Correct Answer:

Verified
Correct Answer:
Verified
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