If a government redistributes \$1,000 from a high-income individual to a low-income individual, and the marginal utility of money is 5 for the low-income individual and 2 for the high-income individual, what is the net change in total utility?

• A. The net change in total utility is zero.
• B. The net change in total utility is an increase of 3,000 units.
• C. The net change in total utility is an increase of 2,000 units.
• D. The net change in total utility is a decrease of 3,000 units.

Answer: (B)