The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1- week period. $\begin{array}{|c|c|c|c|c|}
&\text { Toffee (bars)}&&\text { Cashews (bags) }\
\hline \text { Units } & \begin{array}{c}
\text { Marginal } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Utility }
\end{array} \
\hline 1 & 10 & 10 & 12 & 12 \
\hline 2 & 8 & 18 & 10 & 22 \
\hline 3 & 5 & 23 & 7 & 29 \
\hline 4 & 3 & 26 & 5 & 34 \
\hline 5 & 1 & 27 & 2 & 36 \
\hline 6 & 0 & 27 & 1 & 37 \
\hline 7 & 0 & 27 & 0 & 27 \
\hline
\end{array}$ TABLE 6- 1
-Suppose a utility- maximizing person consumes only two goods,hamburgers and milkshakes.Suppose the price of milkshakes rises and all other variables remain constant.As a result,this person will certainly
A)not increase his consumption of both milkshakes and hamburgers.
B)increase his/her consumption of milkshakes.
C)purchase more milkshakes and fewer hamburgers.
D)consume more hamburgers and the same amount of milkshakes.
E)reduce his/her consumption of both milkshakes and hamburgers.

Question

Quizplus · Accepted Answer

When the price of milkshakes rises, the consumer will not increase consumption of both milkshakes and hamburgers because the higher price reduces the marginal utility per dollar spent on milkshakes, leading to a reallocation of spending.

The Table Below Shows the Quantities of Toffee Bars and Bags