Suppose a Consumer Is at an Optimum

question 318

Multiple Choice

Suppose a consumer is at an optimum. What happens when the price of one good she has been consuming increases?

• A) The value of the marginal utility of the last unit consumed decreases.
• B) The value of the marginal utility of the last unit consumed increases.
• C) The marginal utility per dollar spent on the last unit consumed of that good increases by the same proportion as the price increases.
• D) The marginal utility per dollar spent on the last unit consumed of that good is now smaller than the marginal utility per dollar spent on other goods the person consumes.