Kawamura,a Careful Utility Maximizer,consumes Peanut Butter and Ice Cream

question 94

Multiple Choice

Kawamura,a careful utility maximizer,consumes peanut butter and ice cream.Assume that both peanut butter and ice cream are normal goods and that diminishing marginal utility applies to both goods.Right after he achieves the utility-maximizing level of consumption of the two goods,the price of peanut butter falls.After he adjusts to this event,the marginal utility of peanut butter goes _____ and that of ice cream goes _____.

• A)up;up
• B)down;down
• C)down;up
• D)up;down

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Definitions:

Move Away From

To change position or direction to increase distance from a specific location, situation, or concept.

Integrate

To combine two or more elements into a whole, or to assimilate individuals or groups into a larger community or organization.

Anima and Animus

Concepts in Jungian psychology representing the feminine inner personality in men (anima) and the masculine inner personality in women (animus).

Light and Dark Selves

a concept in psychology referring to the acknowledged and unacknowledged parts of one's personality, including traits, desires, and motivations.