For dessert, Pranisha has the choice between cheesecake and apple pie. Pranisha would gain marginal utility of 50 from a piece of cheesecake, while the price of cheesecake is R50 per slice. Pranisha would gain marginal utility of 30 from a piece of apple pie, and the price of apple pie is R30 per slice. Given this information, Ingrid should buy
A) the cheesecake.
B) the apple pie.
C) two servings of the apple pie and no cheesecake.
D) either the apple pie or the cheesecake; it makes no difference to Pranisha at this point.
Correct Answer:
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