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The Relative Price of Beer to Bacon Is 2:1

Question 46

Multiple Choice

The relative price of beer to bacon is 2:1.If Bob's current consumption is at a level where MUbeer/MUbacon is 1:2,then to maximize total utility Bob must


A) consume more beer and less bacon.
B) not change his current consumption of beer and bacon.
C) consume less beer and more bacon.
D) raise the price of beer.
E) consume twice as much beer and half as much bacon.

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