John Smedley, a Careful Maximizer of Utility, Consumes Only Two

question 31

Multiple Choice

John Smedley, 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 ice cream fell.As he adjusts to this event, he will consume:

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

---

Definitions:

New Model Army

A highly disciplined and effective military force organized in 1645 by the Parliamentarians during the English Civil War, contributing significantly to their victory over the Royalists.

Society of Friends

Also known as Quakers, this is a Christian denomination known for its commitment to peace, simplicity, and equality.

Navigation Acts

A series of laws that were enacted by the British Parliament in the 17th century to regulate trade and commerce between England and its colonies.