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Question
Suppose a consumer is currently buying 5 goods so that utility is maximized. The price of one of the goods falls while the prices of the other 4 goods do not change. The consumer should
A) buy less of all goods being consumed to get to the optimal position.
B) buy more of all of the goods but the one that experiences the decline in price, to get to the optimal position.
C) buy more of all goods being consumed to get to the optimal position.
D) buy more of the good that has experienced the fall in price to get to the optimal position.
Answer
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