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Teddy Buys Only Chocolate Chip Cookies and Hot Chocolate and Spends

Question 48

Multiple Choice

Teddy buys only chocolate chip cookies and hot chocolate and spends all of his income on the two items. Suppose the price of a cookie rises. According to marginal utility theory, Teddy buys


A) more cookies.
B) fewer cookies.
C) more hot chocolate.
D) an equal amount of cookies and hot chocolate.

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