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If There Are Only Two Goods in the Economy, Chocolate

Question 81

Multiple Choice

If there are only two goods in the economy, chocolate and peanut butter, and the price of chocolate falls, the new utility-maximizing bundle for a typical consumer would entail consuming _____ peanut butter and ______ chocolate.


A) less; more
B) more; less
C) more; more
D) less; less

Correct Answer:

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