Multiple Choice
A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on gasoline. She knows then that
A) the price of gasoline must have decreased.
B) the price of food must have increased.
C) the price of gasoline must have increased or the price of food must have decreased.
D) the price of gasoline must have decreased or the price of food must have increased.
Correct Answer:
Verified
Correct Answer:
Verified
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