According to the substitution effect along an indifference curve, ...

[cartlidgeashley]

According to the substitution effect along an indifference curve, when the relative price of a good falls, the consumer ________ substitutes ________ of that good for the other good.
 
  A) always; more
  B) always; less
  C) sometimes; more
  D) sometimes; less

Question 2

Marginal utility diminishes as consumption of a good decreases.
 
  Indicate whether the statement is true or false

[jazzlynnnnn]

Answer to Question 1

A

Answer to Question 2

FALSE

[cartlidgeashley]

Excellent

[komodo7]

Gracias!