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Laurie Spends All of Her Money Buying Bread and Cheese

Question 57

Multiple Choice

Laurie spends all of her money buying bread and cheese.The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30.The price of bread is $3 and the price of cheese is $2.Laurie


A) is buying bread and cheese in utility-maximizing amounts.
B) should buy more bread and less cheese in order to maximize her utility.
C) should buy more cheese and less bread in order to maximize her utility.
D) is spending too much money on bread and cheese.
E) should buy more bread and more cheese in order to maximize her utility.

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