Figure 21-12
-Refer to Figure 21-12. If the consumer moves from bundle V to bundle X, the
A)marginal rate of substitution remains constant.
B)total utility remains constant.
C)total utility increases.
D)Both a) and b) are correct.

Question

Figure 21-12 
-Refer to Figure 21-12. If the consumer moves from bundle V to bundle X, the
A)marginal rate of substitution remains constant. 
B)total utility remains constant. 
C)total utility increases. 
D)Both a) and b) are correct.

Quizplus · Accepted Answer

Moving from bundle V to X involves consuming more of both goods, and therefore increases the total utility. The marginal rate of substitution may or may not remain constant, and the total utility is likely to change accordingly, so options A and B are incorrect.

Figure 21-12 -Refer to Figure 21-12. If the Consumer Moves from Bundle