If the consumption of one good is increased, how must a consumer alter his consumption of another good in order to remain indifferent between two bundles?
A)he must reduce his consumption of another good
B)he must increase his consumption of another good
C)he must not change his consumption of another good
D)he can reduce, increase or not change his consumption of another good

Question

Quizplus · Accepted Answer

To remain indifferent between two bundles, if a consumer increases the consumption of one good, they must reduce their consumption of another good to maintain the same level of utility or satisfaction, assuming a constant budget and the principle of diminishing marginal utility.

If the Consumption of One Good Is Increased, How Must