Author Question: If indifference curves cross, then: A) the assumption of a diminishing marginal rate of ... (Read 241 times)

londonang · **on:** Jul 1, 2018

If indifference curves cross, then:

A) the assumption of a diminishing marginal rate of substitution is violated.
B) the assumption of transitivity is violated.
C) the assumption of completeness is violated.
D) consumers minimize their satisfaction.
E) all of the above

Question 2

Suppose that a market basket of two goods is changed by adding more of one of the goods and subtracting one unit of the other. The consumer will:

A) rank the market basket more highly after the change.
B) rank the market basket more highly before the change.
C) rank the market basket just as desirable as before.
D) any one of the above statements may be true.