Multiple Choice
Suppose a consumer buys two goods, and and has income of . Initially and 3 and the consumer chooses basket with and . The prices change to and and the consumer chooses basket with and .
A) These choices are consistent with utility maximization.
B) These choices are not consistent with utility maximization.
C) With this information it is not possible to determine if these choices are consistent with utility maximization.
D) Basket must be strictly preferred to basket .
Correct Answer:

Verified
Correct Answer:
Verified
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