Steven's marginal utility from his tenth movie rental is 1 util, and his marginal utility from his tenth cup of coffee is 4. If the price of a movie rental is $1 and the price of a cup of coffee is $2, what should Steven do?
A) increase the quantity of coffee that he consumes
B) increase the quantity of movie rentals that he consumes
C) nothing because his utility is as high as possible
D) decrease the quantity that he consumes of both goods
Correct Answer:
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