The Relative Price of Beer to Bacon Is 2:1

question 75

Multiple Choice

The relative price of beer to bacon is 2:1. If Bob's current consumption is at a level where MUbeer/MUbacon is 1:2, then to maximize total utility Bob must

• A)consume more beer and less bacon.
• B)not change his current consumption of beer and bacon.
• C)consume less beer and more bacon.
• D)raise the price of beer.
• E)consume twice as much beer and half as much bacon.