Multiple Choice
Alexandra consumes only caviar and champagne,but she does have a limited income of $400.Her current consumption choice is 5 ounces of caviar,at a price of $50 per ounce,and 6 bottles of champagne,at $25 each.The last ounce of caviar added 100 units to Alexandra's total utility,while the last bottle of champagne added 75 units.If Alexandra chooses 4 ounces of caviar and 8 bottles of champagne instead her total utility will:
A) increase by 150 units
B) decrease by 150 units
C) increase by 100 units
D) decrease by 100 units
E) increase by 50 units
Correct Answer:

Verified
Correct Answer:
Verified
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