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John Consumes Pizza and Pasta,both Normal Goods

Question 83

Multiple Choice

John consumes pizza and pasta,both normal goods.He is maximizing his utility in consumption of both goods.The price of pasta rises.Assuming that diminishing marginal utility applies to both goods,as John adjusts to this event,the marginal utility of pizza will _____,and the marginal utility of pasta will _____.


A) rise;rise
B) fall;fall
C) fall;rise
D) rise;fall

Correct Answer:

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