Suppose the Price Of $A$ Is $\$ 20$ , the Price Of $B$

Multiple Choice

Suppose the price of $A$ is $\$ 20$ , the price of $B$ is $\$ 10$ , and that the consumer is currently spending all available income. At the consumer's current consumption basket the marginal utility of $A$ is 8 and the marginal utility of $B$ is 4 .

A) The consumer is currently maximizing utility.
B) The consumer could increase utility by consuming more of good $A$ and less of $\operatorname { good } B$ .
C) The consumer could increase utility by consuming more of good $B$ and less of $\operatorname { good } A$ .
D) Nothing can be said about the consumer's utility because we do not know the consumer's income or utility function.