The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1, and the price of good B is $2. The income of the consumer is $8. If the price of A decreases, while the price of B and the consumer's income stay the same, we would expect
A)MU/P of A to increase, and the consumer will thus buy less of B.
B)MU/P of A to increase, and the consumer will thus buy less of A.
C)MU/P of A to decrease, and the consumer will thus buy less of B.
D)MU/P of A to decrease, and the consumer will thus buy less of A.

Question

The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1, and the price of good B is $2. The income of the consumer is $8.  If the price of A decreases, while the price of B and the consumer's income stay the same, we would expect
A)MU/P of A to increase, and the consumer will thus buy less of B. 
B)MU/P of A to increase, and the consumer will thus buy less of A. 
C)MU/P of A to decrease, and the consumer will thus buy less of B. 
D)MU/P of A to decrease, and the consumer will thus buy less of A.

Quizplus · Accepted Answer

The Answer of The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1, and the price of good B is $2. The income of the consumer is $8.  If the price of A decreases, while the price of B and the consumer's income stay the same, we would expect
A)MU/P of A to increase, and the consumer will thus buy less of B. 
B)MU/P of A to increase, and the consumer will thus buy less of A. 
C)MU/P of A to decrease, and the consumer will thus buy less of B. 
D)MU/P of A to decrease, and the consumer will thus buy less of A.

The Table Shows the Marginal-Utility Schedules for Goods a and B