Suppose you eat at a restaurant that serves clams at a fixed price and crab legs at a price that varies based on market conditions. Each week, the marginal utility you attach to an order of crab legs is 100, and the marginal utility of an order of clams is 50 . One week you have crab legs, but the next week you have clams. This means that
a. you are irrational
b. your tastes must have changed
c. the price of clams dropped below the price of crab legs
d. the price of crab legs increased
e. the price of crab legs must have increased to more than twice that of clams
Question 2
Sally is allocating her budget between two goods, A and B. If Sally has used up the budget on a combination of A and B for which MUA/PA exceeds MUB/PB, she can increase total utility by buying
a. more A and less B
b. more B and less A
c. more A without changing her consumption of B
d. less B without changing her consumption of A
e. more B and more A
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