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Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit ...

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Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit ...

Sheri is currently purchasing 10 units of a normal good and her indifference curves exhibit diminishing marginal rate of substitution. Suppose there is a decrease in the market price of this good. Then
A) both her utility and her consumer surplus will increase.
B) her consumer surplus will increase, but her utility will remain the same.
C) her utility will increase, but her consumer surplus will remain the same.
D) her consumer surplus will increase, but the change in her utility is unknown without more information.

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Microeconomics

Edition: 8^th

Author: Perloff

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More solutions for this book are available here

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