Multiple Choice
The relative price of beer to bacon is 2:1.If Bob's current consumption is at a level where MUbₑₑᵣ/MUbₐcₒn is 1:2, then to maximize total utility Bob must
A) consume more beer and less bacon.
B) not change his current consumption of beer and bacon.
C) consume less beer and more bacon.
D) raise the price of beer.
E) consume twice as much beer and half as much bacon.
Correct Answer:

Verified
Correct Answer:
Verified
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