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Economics

Cher's marginal rate of substitution of necklaces (N) for earrings (E) is 5 (MRSEN = 5).

This information implies that:

A. Cher should own 5 times as many necklaces as pairs of earrings.

B. The slope of the indifference curve is 5 and thus upward sloping.

C. Cher will move to a higher indifference curve if she trades away 5 necklaces for one more pair of earrings.

D. Cher is willing to trade away 5 necklaces for one more pair of earrings, holding her utility constant.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91227732

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