Gil can consume either pens or milkshakes. Both pens and milkshakes sell for $1. Gil finds that when his income is spent, his marginal utility of pens will be 10 while his marginal utility of milkshakes will be 8. Gil could increase his utility without violating his budget by consuming

Question

Quizplus · Accepted Answer

Gil should consume more pens and fewer milkshakes because the marginal utility per dollar spent on pens (10) is higher than that on milkshakes (8), indicating that he gets more utility per dollar from pens.

Gil Can Consume Either Pens or Milkshakes