Steve is in a consumer equilibrium. Then, the price of steak increases from $6 a pound to $8 a pound. Steve decreases the number of pounds of steaks he buys each week
A) and decreases his total utility.
B) only if his income also decreases.
C) so that the marginal utility per dollar spent on steaks is the same as it was when the price was $6 a pound.
D) so that both his total utility and his marginal utility from steak fall.

Question

Quizplus · Accepted Answer

The Answer of Steve is in a consumer equilibrium. Then, the price of steak increases from $6 a pound to $8 a pound. Steve decreases the number of pounds of steaks he buys each week
A) and decreases his total utility.
B) only if his income also decreases.
C) so that the marginal utility per dollar spent on steaks is the same as it was when the price was $6 a pound.
D) so that both his total utility and his marginal utility from steak fall.

Steve Is in a Consumer Equilibrium