Jerry's Marginal Utility for consuming beer and pizza with $8.00 in income
Referring to the above table, suppose Jerry's ratios of marginal utility of beer to the price of beer and the marginal utility of hotdogs to the price of hotdogs are equal. If the price of beer increases
A. Jerry will probably consume less beer and fewer hotdogs.
B. Jerry will probably consume less beer and more hotdogs.
C. Jerry will probably consume more beer and fewer hotdogs.
D. Jerry will still consume the same amount of beer and hotdogs.
Answer: B
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