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If a Consumer Reallocates His or Her Spending Away from Good

Question 4

Multiple Choice

If a consumer reallocates his or her spending away from good A and towards good B, then the consumer's total utility will increase if:

A) MU_A/P_A > MU_B/P_B
B) MU_A/P_A < MU_B/P_B
C) MU_A/P_A > 0 and MU_B/P_B > 0
D) MU_A/P_A < 0 and MU_B/P_B < 0

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