Suppose a Consumer Can Spend $1,000 on Food and Clothing

Multiple Choice

Suppose a consumer can spend $1,000 on food and clothing. The price of food is $5 per unit and the price of clothing is $20 per unit. Also suppose the consumer was consuming 100 units of food and 25 units of clothing, and then the price of food rose to $10. Which of the following statements is true?

A) The maximum amount of food the consumer can buy is 100 units.
B) The maximum amount of clothing the consumer can buy is 25 units.
C) The maximum amount of food the consumer can buy is 50 units.
D) If the consumer does not reduce food consumption, clothing consumption can be 12.5 units, at best.
E) The consumer can consume 50 units of clothing.