A consumer maximizes satisfaction by consuming 4 units of clothing (represented on the vertical axis of an indifference map) and 2 units of food (represented on the horizontal axis). If the price of food increases from $5 to $6, the price of clothing remains at $5 and the budget remains $30, the consumer will move to an indifference curve with a _________________________ level of satisfaction and the new marginal rate of substitution will be equal to _____________________________.

0 votes
     higher; 5/6
      lower; 6/5
      higher; 6/5
      lower; 5/6
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
lower; 6/5
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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