A Consumer Currently Spends a Given Budget on Two Goods

Multiple Choice

A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 12 and the marginal utility of Y is 8. The unit price of X is $3 and the unit price of Y is $4. The utility-maximizing rule suggests that this consumer should

A) decrease consumption of product X and increase consumption of product Y.
B) decrease consumption of product X and decrease consumption of product Y.
C) decrease consumption of product Y and increase consumption of product X.
D) stick with the current consumption mix because it yields maximum utility.