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A Buyer Has $20 to Spend on Rice and Beans

Question 97

Multiple Choice

A buyer has $20 to spend on rice and beans.Rice costs $2 and beans cost $3 per pound.The buyer is buying the combination of 4 pounds of rice and 4 pounds of beans.At this combination,her marginal benefit from rice is $14 and her marginal benefit from beans is $18.This buyer should ________.


A) buy less beans and more rice
B) buy more rice and less beans
C) buy more of both rice and beans
D) not change his consumption

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