Anne has chosen how many bagels and how many units of cream cheese she would buy this month.She has $20 to spend on these two goods.Suppose that her chosen combination,the marginal benefit per dollar for bagels is $6,and her marginal benefit per dollar for cream cheese is $10.By reallocating one dollar from ________ to ________ she can add ________ to her benefit.
A) bagels; cream cheese; $4
B) bagels; cream cheese; $10
C) cream cheese; bagels; $6
D) cream cheese; bagels; $10

Question

Quizplus · Accepted Answer

By reallocating one dollar from bagels to cream cheese, Anne increases her marginal benefit per dollar from $6 to $10, thus adding $4 to her benefit.

Anne Has Chosen How Many Bagels and How Many Units