b. prefers bundle E because it lies on a higher indifference curve.
T/F: If a consumer experiences a decrease in income, the new budget constraint will have the same slope as the old budget constraint.
T/F: Consumer will always consume more of a good if their income increases. T/F: The marginal rate of substitution is the slope of the indifference curve. T/F: If a consumer purchases more of good A when her income falls, good A is an inferior good.
d. Both a and b are correct.