Multiple Choice
Billy likes candy and popcorn.Candy sells for $0.50 a bag and popcorn sells for $1 per bag.Currently he is in consumer equilibrium.Then the price of candy rises to $1 a bag.Which statement is true in the new consumer equilibrium?
A) The marginal utility from popcorn will increase.
B) Marginal utility per dollar on candy will be equal to 2.
C) Total utility will increase.
D) The marginal utility from candy will decrease.
E) The marginal utility from candy will be equal to the marginal utility from popcorn.
Correct Answer:
Verified
Correct Answer:
Verified
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