Exhibit 6-6 Marginal Utility for Data for Clothes and Amusement

Multiple Choice

Exhibit 6-6 Marginal utility for data for clothes and amusement $$\begin{array} { | c | c | c | } \hline \text { Quantity } & \text { Clothes } & \text { Amusement } \\\hline 1 & 15 & 20 \\2 & 13 & 18 \\3 & 10 & 15 \\4 & 8 & 12 \\5 & 6 & 10 \\\hline\end{array}$$
-Refer to Exhibit 6-6. Your budget is $50. The price of amusement goods is $10. If the price of clothes falls to $4, which of the following statements is true?

A) The marginal-utility-to-price ratio for clothes will decrease.
B) The marginal-utility-to-price ratio for clothes will increase.
C) The quantity demanded of clothes will decrease.
D) Both b and c are true.
E) The quantity demanded for amusement goods will remain constant.