The table shows the marginal-utility schedules for goods A and B for a hypothetical consumer. The price of good A is $1, and the price of good B is $2. The income of the consumer is $8.
If the price of B falls to $1, while the price of A and the consumer's income stay the same, what would be the utility-maximizing combination of goods A and B?
A) 5 A and 3 B
B) 4 A and 4 B
C) 3 A and 5 B
D) 2 A and 6 B
Correct Answer:
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