Michael Kawamura, a careful utility maximizer, consumes only two goods, peanut butter and ice cream.He has just achieved the utility-maximizing solution in his consumption of the two goods when the price of peanut butter falls.As he adjusts to this event:
A.the marginal utility of peanut butter and of ice cream will rise.
B.the marginal utility of peanut butter and of ice cream will fall.
C.the marginal utility of peanut butter will fall, and the marginal utility of ice cream will rise.
D.the marginal utility of peanut butter will rise, and the marginal utility of ice cream will fall.

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The Answer of Michael Kawamura, a careful utility maximizer, consumes only two goods, peanut butter and ice cream.He has just achieved the utility-maximizing solution in his consumption of the two goods when the price of peanut butter falls.As he adjusts to this event:
A.the marginal utility of peanut butter and of ice cream will rise.
B.the marginal utility of peanut butter and of ice cream will fall.
C.the marginal utility of peanut butter will fall, and the marginal utility of ice cream will rise.
D.the marginal utility of peanut butter will rise, and the marginal utility of ice cream will fall.

Michael Kawamura, a Careful Utility Maximizer, Consumes Only Two Goods