Demand and the law of demand
Assume that good A and good B are substitutes for each other. Andrea is currently consuming the utility-
maximizing combination of these two goods.
How will the MUA and MUB change if Andrea alters her consumption as a result of an increase in the
price of good B?
Choose 1 answer:

MUB will increase and MUA will decrease as the consumer reallocates consumption.
MUA will increase and MUB will decrease as the consumer reallocates consumption.
MUA and MUB will both definitely increase.
MU and MUB will both definitely decrease.
MU will both increase, but the MU will increase by more than the increase in MUB.