Melika spends all her income on two goods, magazines and carry-out lunches.The price of a magazine is $5, and the price of a carry-out lunch is $7.At the current consumption bundle, the marginal utility of magazines is 10, and the marginal utility of carry-out lunches is 21.To maximize utility given her income, Melika should:
A.increase her consumption of carry-out lunches and decrease her consumption of magazines.
B.increase her consumption of magazines and decrease her consumption of carry-out lunches.
C.continue to consume the current bundle.
D.consume equal amounts of magazines and carry-out lunches.

Question

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The Answer of Melika spends all her income on two goods, magazines and carry-out lunches.The price of a magazine is $5, and the price of a carry-out lunch is $7.At the current consumption bundle, the marginal utility of magazines is 10, and the marginal utility of carry-out lunches is 21.To maximize utility given her income, Melika should:
A.increase her consumption of carry-out lunches and decrease her consumption of magazines.
B.increase her consumption of magazines and decrease her consumption of carry-out lunches.
C.continue to consume the current bundle.
D.consume equal amounts of magazines and carry-out lunches.

Melika Spends All Her Income on Two Goods, Magazines and Carry-Out