Multiple Choice
If the marginal utility of food divided by the price of food exceeds the marginal utility of clothing divided by the price of clothing
A) the price of food is too high and less food should be purchased.
B) the total utility received from food exceeds the total utility received from clothing.
C) more should be spent on food and less on clothing.
D) more clothing should be purchased to raise the marginal utility of the last dollar spent.
E) the price of clothing must exceed the price of food.
Correct Answer:

Verified
Correct Answer:
Verified
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