Multiple Choice
Jill, a careful utility maximizer, consumes peanut butter and ice cream. Assume that both peanut butter and ice cream are normal goods. She had just achieved the utility-maximizing solution in her consumption of the two goods when the price of peanut butter increased. As she adjusted to this event, the marginal utility of peanut butter _____ and that of ice cream _____.
A) rose; rose
B) fell; fell
C) fell; rose
D) rose; fell
Correct Answer:
Verified
Correct Answer:
Verified
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