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Greg Spends His Entire Budget on Two Goods: He Plays

Question 109

Multiple Choice

Greg spends his entire budget on two goods: he plays video games at the mall arcade and he buys pizza. He discovers that his MU/P of video games is lower than his MU/P of pizza. From this, we know that he would be:


A) happier eating less pizza and playing fewer video games.
B) happier eating less pizza and playing more video games.
C) happier eating more pizza and playing fewer video games.
D) indifferent to which selection he makes.
E) as happy as possible, since he is already maximizing total utility.

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