Say a consumer is choosing between red wine and white wine. The price of red wine is 20 and the price of white wine is 10. If the marginal rate of substitution is 1, and if red wine is on the horizontal axis then the consumer is purchasing:

A. More than what her income would allow
B. Too much white wine
C. Just the right amount of both goods
D. Too much red wine


Answer: D

Economics

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