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Advise Sarah How to Maximize Her Utility If MUA=8, MUB=20,

Question 68

Multiple Choice

Advise Sarah how to maximize her utility if MUA=8, MUB=20, PA=4 and PB=5.


A) Consume equal amounts of both goods.
B) Consume more of good A and less of good B.
C) Consume more of good B and less of good A.
D) Lower the price of good B.
E) Raise the price of good A.

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