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:

A) the marginal utility of peanut butter and of ice cream will rise.
B) the marginal utility of peanut butter and of ice cream will fall.
C) the marginal utility of peanut butter will fall, and the marginal utility of ice cream will rise.
D) the marginal utility of peanut butter will rise, and the marginal utility of ice cream will fall.