Suppose a Consumer Buys Two Goods $x$ And $y$ And Has Income Of

Multiple Choice

Suppose a consumer buys two goods, $x$ and $y$ and has income of $\$ 30$ . Initially $P _ { x } = 3$ and $P _ { y } = 3$ and the consumer chooses basket $A$ with $x = 7$ and $y = 3$ . The prices change to $P _ { x } = 4$ and $P _ { y } = 2$ and the consumer chooses basket $B$ with $x = 5$ and $y = 5$ .

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 B must be preferred to basket A.