(Figure: Coffee and Comic Books) Refer to the figure. Aconsumer has $2 to spend on comic books (priced at $1 percomic book) and coffee (priced at $1 per cup). To maximizeutility, should this consumer buy two cups of coffee?
A)Yes, buying two cups of coffee maximizes the consumer's total utility.
B)Yes, because the marginal utility of the second comic book is less than the marginal utility of the second cup of Coffee.
C)No, the consumer should put back one cup of coffee (losing 16 utils) and replace it with a comic book (gaining 18 utils).(True Answer )Correct
D)No, the consumer should buy two comic books to maximize utility.

Question

(Figure: Coffee and Comic Books) Refer to the figure. Aconsumer has $2 to spend on comic books (priced at $1 percomic book) and coffee (priced at $1 per cup). To maximizeutility, should this consumer buy two cups of coffee?
A)Yes, buying two cups of coffee maximizes the consumer's total utility. 
B)Yes, because the marginal utility of the second comic book is less than the marginal utility of the second cup of Coffee. 
C)No, the consumer should put back one cup of coffee (losing 16 utils) and replace it with a comic book (gaining 18 utils).(True Answer )Correct 
D)No, the consumer should buy two comic books to maximize utility.

Quizplus · Accepted Answer

The consumer should put back one cup of coffee (losing 16 utils) and replace it with a comic book (gaining 18 utils). This is because the marginal utility of the second cup of coffee is less than the marginal utility of the second comic book. Therefore, the consumer can increase their total utility by replacing one cup of coffee with a comic book.

(Figure: Coffee and Comic Books) Refer to the Figure