Steve Is in a Consumer Equilibrium

question 99

Multiple Choice

Steve is in a consumer equilibrium. Then, the price of steak increases from $6 a pound to $8 a pound. Steve decreases the number of pounds of steaks he buys each week

• A) and decreases his total utility.
• B) only if his income also decreases.
• C) so that the marginal utility per dollar spent on steaks is the same as it was when the price was $6 a pound.
• D) so that both his total utility and his marginal utility from steak fall.

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