Economics for Today 9th Edition by Irvin Tucker

Exercise 16

Assume an individual consumes only milk and doughnuts, and has arranged consumption so that the last glass of milk yields 12 utils and the last doughnut 6 utils. If the price of milk is $1 per glass and the price of a doughnut is $.50, we can conclude that the
A) consumer should consume less milk and more doughnuts.
B) price of milk is too high relative to doughnuts.
C) consumer should consume more milk and fewer doughnuts.
D) consumer is in equilibrium.