Suppose that Fiona spends all of her income on 10 units of good X and 14 units of good Y. Fiona's marginal utility from the 10th unit of good X is 24 utils, and her marginal utility from the 14th unit of good Y is 20 utils. If the price of good X is $8 per unit and the price of good Y is $5 per unit, then to comply with the rational spending rule, Fiona should:
A. continue to purchase 10 units of good X and 14 units of good Y.
B. purchase more than 10 units of good X and less than 14 units of Y.
C. purchase less than 10 units of good X and more than 14 units of good Y.
D. purchase more than 10 units of good X and more than 14 units of good Y.
Answer: C
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A. floor; shortage; 10
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C. ceiling; shortage; 10
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