Bobby moves along an indifference curve for shirts and pants by increasing consumption of shirts and decreasing consumption of pants. As Bobby has more and more pants, the number of shirts he is willing to trade for yet another pair of pants
A) decreases.
B) increases.
C) does not change.
D) initially decreases and then increases.
Question 2
According to marginal utility theory, a rise in income will
A) increase a consumer's total utility.
B) increase consumption of all goods.
C) increase the marginal utility of all goods.
D) None of the above answers is correct.
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