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Cordelia Is Currently Spending All of Her Income on Coats

Question 143

Multiple Choice

Cordelia is currently spending all of her income on coats and watches. If Cordelia finds that her marginal utility per dollar spent on coats exceeds her marginal utility per dollar spent on watches, what should she purchase in order to reach consumer equilibrium?


A) more watches and less coats
B) only watches
C) an equal number of coats and watches
D) more coats and less watches

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