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

Question

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

Quizplus · Accepted Answer

Moving from bundle W to bundle Z involves a decrease in the quantity of both goods consumed. Since the consumer is moving along the same indifference curve, this means that the marginal rate of substitution remains constant. However, the decrease in quantity of both goods consumed means that total utility decreases. Therefore, choice C is the correct answer.

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