The Cost of Basics Like Milk, Bread, Potatoes and Bananas

question 37

Multiple Choice

The cost of basics like milk, bread, potatoes and bananas has jumped in the past year, forcing families to nix luxuries, steer away from organic goods and buy more house brands. "I think it's affecting everybody," said Elize Joseph 48, a nursing attendant. "To spend $40 on groceries is nothing. It doesn't go a long way." When food prices increase, what will happen to Elize's total utility?

• A) It increases.
• B) It stays the same.
• C) It decreases.
• D) It cannot be determined without knowing her total income.

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