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

Question

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

Quizplus · Accepted Answer

Diminishing marginal rate of substitution is illustrated by the decreasing slope of the indifference curves as one moves from left to right, indicating that Rashid is willing to give up fewer books for each additional CD as he consumes more CDs and fewer books.

Use the Figure Below to Answer the Following Question