Suppose at the consumer's current consumption bundle the marginal rate of substitution of cheese for wine is 1/2 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
Q162: Bundle J contains 10 units of good
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