Multiple Choice
Smedley,a careful utility maximizer,consumes peanut butter and ice cream.Assume that both peanut butter and ice cream are normal goods.Right after he achieves the utility-maximizing level of consumption of the two goods,the price of ice cream increases.To adjust to this event,he consumes _____ peanut butter and _____ ice cream.
A) more;more
B) less;less
C) more;less
D) less;more
Correct Answer:
Verified
Correct Answer:
Verified
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