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Tori Devotes All of Her Income to the Consumption of Two

Question 376

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Tori devotes all of her income to the consumption of two goods, peanut butter and jelly.She has just discovered that at her current level of consumption the marginal utility of a jar of peanut butter is 5 and the marginal utility of a jar of jelly is 7.Which of the following statements is true?
A.In order to maximize her total utility, Tori would consume more of both goods.
B.In order to maximize her total utility, Tori would consume less of both goods.
C.In order to maximize her total utility, Tori would consume more peanut butter and less jelly.
D.There is not enough information provided to justify a change in Tori's current level of consumption.

Correct Answer:

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There is enough info...

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