Michael Kawamura, a Careful Maximizer of Utility, Consumes Only Two

Multiple Choice

Michael Kawamura, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream.He had just achieved the utility-maximizing solution in his consumption of the two goods when the price of peanut butter fell.As he adjusts to this event he will consume:

A) more peanut butter and less ice cream.
B) less peanut butter and less ice cream.
C) more peanut butter and more ice cream.
D) less peanut butter and more ice cream.