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

question 343

Essay

John Smedley, a careful utility maximizer, 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 increases.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.

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Definitions:

Elastin

A highly elastic protein in connective tissue that allows many tissues in the body to resume their shape after stretching or contracting.

Reticular Fibers

Thin, branching fibers of collagen found in the connective tissue, supporting the soft tissue of organs.

Collagen α-Chains

The triple helical strands that make up collagen, the main structural protein in various connective tissues.

Collagen

The primary structural protein found in skin and other connective tissues, widely known for providing strength and elasticity.