Suppose a consumer is at an optimum. What happens when the price of one good she has been consuming increases?
A. The marginal utility per dollar spent on the last unit consumed of that good is now smaller than the marginal utility per dollar spent on other goods the person consumes.
B. The value of the marginal utility of the last unit consumed decreases.
C. The value of the marginal utility of the last unit consumed increases.
D. The marginal utility per dollar spent on the last unit consumed of that good increases by the same proportion as the price increases.
Answer: A
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