Joe is currently in consumer equilibrium by consuming cheese and crackers, such that the last cracker consumed yielded 8 utils and the last piece of cheese consumed yielded 12 utils. Assume the price of crackers is two cents per cracker and the price of cheese is three cents per piece. If the price of crackers increases to four cents, Joe should his consumption of and also crackers and his marginal utility from crackers will his consumption of cheese and his marginal utility from cheese will (Assume he is in the downward sloping portion of the MU curve.)
Joe is currently in consumer equilibrium by consuming cheese and crackers, such that the last cracker consumed yielded 8 utils and the last piece of cheese consumed yielded 12 utils. Assume the price of crackers is two cents per cracker and the price of cheese is three cents per piece. If the price of crackers increases to four cents, Joe should his consumption of and also crackers and his marginal utility from crackers will his consumption of cheese and his marginal utility from cheese will (Assume he is in the downward sloping portion of the MU curve.)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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Transcribed Image Text:Joe is currently in consumer equilibrium by consuming cheese and crackers,
such that the last cracker consumed yielded 8 utils and the last piece of
cheese consumed yielded 12 utils. Assume the price of crackers is two cents
per cracker and the price of cheese is three cents per piece. If the price of
crackers increases to four cents, Joe should
his consumption of
crackers and his marginal utility from crackers will
and also
his consumption of cheese and his marginal utility from cheese will
(Assume he is in the downward sloping portion of the MU curve.)
Ο Ο Ο
decrease; increase; increase; decrease
increase; increase; increase; increase
increase; decrease; increase; decrease
increase; increase; decrease; decrease
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