7.Joe is currently in consumer equilibrium by consuming cheese and crackers, suc

Question

7.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 __________.
Choose one answer.
a. increase; increase; increase; increase
b. increase; decrease; increase; decrease
c. decrease; increase; decrease; increase
d. increase; increase; decrease; decrease
e. decrease; increase; increase; decrease

Explanation / Answer

the answer will definitely be option E ie e. decrease; increase; increase; decrease

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