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Paula Is Currently Spending All of Her Budget and She

Question 126

Multiple Choice

Paula is currently spending all of her budget and she finds that the marginal utility per dollar from dresses exceeds the marginal utility per dollar from hats.To maximize her utility,Paula should therefore buy


A) more dresses and fewer hats.
B) more hats and fewer dresses.
C) more dresses and hats.
D) fewer dresses and hats.
E) probably change her purchases but more information is needed to determine if she should buy more or fewer dresses and hats.

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