A Consumer Has Been Buying 4 Magazines and 3 Books

question 128

Multiple Choice

A consumer has been buying 4 magazines and 3 books a month for many months. The price of magazines then decreases, which directly causes the marginal utility per dollar spent on

• A) magazines to increase, thereby inducing the consumer to purchase fewer magazines and more books.
• B) magazines to increase, thereby inducing the consumer to purchase more magazines and fewer books.
• C) books to increase, thereby inducing the consumer to purchase fewer magazines and more books.
• D) books to decrease, thereby inducing the consumer to purchase fewer magazines and more books.