Angela is currently playing five games of pool and bowling three games. At this level of consumption, her marginal utility from a game of pool is 10 and her marginal utility from bowling a game is 6. If both pool and bowling cost $1 a game, Angela should:
A)bowl more and play pool less.
B)just go home.
C)bowl only.
D)bowl less and play pool more.

Question

Quizplus · Accepted Answer

Angela's marginal utility per dollar spent on pool (10)is greater than her marginal utility per dollar spent on bowling (6). Thus, according to the rational spending rule, she should reallocate her spending away from bowling and towards pool.

Angela Is Currently Playing Five Games of Pool and Bowling