If an individual consumes only two goods and consumption of one good increases, then in order to keep the consumer on the same indifference curve, consumption of the other good must
A) increase.
B) decrease.
C) increase proportionately.
D) become negative.

Question

Quizplus · Accepted Answer

When the consumption of one good increases, the marginal utility of that good decreases and the marginal utility of the other good increases. Therefore, to stay on the same indifference curve, the consumer must decrease consumption of the good that has become relatively less preferred and increase consumption of the other good that has become more preferred.

If an Individual Consumes Only Two Goods and Consumption of One