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Say a consumer is choosing between wine and cheese. The price of wine is 12 and the price of cheese is 2. If the marginal
Say a consumer is choosing between wine and cheese. The price of wine is 12 and the price of cheese is 2. If the marginal rate of substitution is 4, and if wine is on the horizontal axis and cheese is on the vertical axis then the consumer is purchasing:
A. just the right amount of both goods
B. purchasing more than what her income would allow
C. too much cheese
D. too much wine
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