If Ewan Is Consuming His Utility Maximising Bundle and the Price

question 105

Multiple Choice

If Ewan is consuming his utility maximising bundle and the price of one good falls, what happens to the marginal utility per dollar spent on this good (MU/P) , and what should Ewan do?

• A)MU/P has increased, and Ewan should buy more of this good.
• B)MU/P has increased, and Ewan should buy less of this good.
• C)MU/P has decreased, and Ewan should buy more of this good.
• D)MU/P has decreased, and Ewan should buy less of this good.

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