Multiple Choice
John consumes pizza and pasta, both normal goods. He is maximizing his utility in consumption of both goods. The price of pasta rises. Assuming that diminishing marginal utility applies to both goods, as he adjusts to this event, the marginal utility of pizza will _____, and the marginal utility of pasta will _____.
A) rise; rise
B) fall; fall
C) fall; rise
D) rise; fall
Correct Answer:

Verified
Correct Answer:
Verified
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