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Steven Consumes Staples and Paper Clips

Question 240

Multiple Choice

Steven consumes staples and paper clips. He is maximizing his utility in consumption of both goods. The price of paper clips rises. Assuming that diminishing marginal utility applies to both goods, as he adjusts to this event, the marginal utility of staples will _____, and the marginal utility of paper clips will _____.


A) rise; fall
B) fall; rise
C) rise; rise
D) fall; fall

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