The State Department of Agriculture Raised the Minimum Price for a Gallon

question 193

Multiple Choice

The state Department of Agriculture raised the minimum price for a gallon of milk in the city on Tuesday to $4.37. "If you've got two or three kids and you're living on a fixed income and you're paying half your income on rent," Gioia said, "then you're really in a bind and you're making choices you should never have to make." If even after this price increase Gioia's marginal utility per dollar is higher for milk than for other goods, what should Gioia do?

• A) increase her consumption of milk
• B) decrease her consumption of milk
• C) not change her consumption of milk
• D) increase her consumption of milk only if her income increases

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Definitions:

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Reticular Formation

A network of neurons located in the brainstem that is involved in regulating wakefulness and sleep cycles.