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Steven Consumes Only Two Goods, Both of Which Are Normal

question 66

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Steven consumes only two goods, both of which are normal goods.He is maximizing his utility in consumption of both goods.Now assume the price of one of the goods falls.How should Steven adjust his consumption after the change in price?
A.Steven should consume more of both goods.
B.Steven should consume more of the good whose price dropped and less of the good whose price did not change.
C.Steven should consume less of both goods.
D.Steven should consume less of the good whose price dropped and more of the good whose price did not change.


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