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Michael Consumes Only Steak and Lobster

Question 115

Multiple Choice

Michael consumes only steak and lobster. Suppose that the price of steak rises. After Michael is back at equilibrium, compared to the situation when steak was cheaper, the marginal utility from the last steak will


A) have increased.
B) not have changed.
C) have decreased.
D) not be comparable with the marginal utility before the price hike.

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