Kawamura, a Careful Utility Maximizer, Consumes Peanut Butter and Ice

Multiple Choice

Kawamura, a careful utility maximizer, consumes peanut butter and ice cream. Assume that both peanut butter and ice cream are normal goods and that diminishing marginal utility applies to both goods. He had just achieved the utility-maximizing solution in his consumption of the two goods when the price of peanut butter fells. As he adjusted to this event, the marginal utility of peanut butter _____ and the marginal utility of ice cream _____.

A) rose; rose
B) fell; fell
C) fell; rose
D) rose; fell