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Assume the Consumer Is Correctly Applying the Rational Spending Rule

Question 53

Multiple Choice

Assume the consumer is correctly applying the rational spending rule for goods jeans and t-shirts.If the price of jeans falls,purchases of jeans and t-shirts rise because


A) the marginal utility of jeans increases.
B) the marginal utility of t-shirts increases.
C) the marginal utility of jeans decreases.
D) combinations of jeans and t-shirts that could not be considered before now become available.

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