Joshua consumes only apples and bread and is in consumer equilibrium. Joshua reads that eating bread is healthy, so his total utility from each loaf of bread increases. At his new consumer equilibrium Joshua would consume
A) more apples and less bread.
B) fewer apples and more bread.
C) some combination of apples and bread corresponding to a lower ratio of the marginal utility of bread to the marginal utility of apples.
D) the same quantity of apples and the same quantity of bread.

Question

Quizplus · Accepted Answer

When the total utility from bread increases, the marginal utility per loaf of bread increases, leading Joshua to consume more bread and fewer apples to restore equilibrium.

Joshua Consumes Only Apples and Bread and Is in Consumer