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The Relative Price of Beer to Back Bacon Is 2:1

Question 12

Multiple Choice

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


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

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