Rhonda spends all of her income on clothes and CDs. Suppose this situation were graphed with clothes on the vertical axis and CDs on the horizontal axis. Rhonda consumes a bundle of the two goods whose indifference curve is flatter than the budget line. To increase total utility, given her income, Rhonda should:
A) increase her consumption of clothes and decrease her consumption of CDs.
B) increase her consumption of CDs and decrease her consumption of clothes.
C) do nothing-she is consuming a bundle on her budget line.
D) Not enough information is given to answer this question.
Correct Answer:
Verified
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