Suzy spends all of her income on potato chips and textbooks.To maximize her total utility,she should

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In order to maximize her total utility, Suzy should allocate her income in such a way that she gets the same marginal utility per dollar spent on both potato chips and textbooks. This ensures that she is getting the maximum satisfaction per dollar spent on each good, and therefore maximizing her overall satisfaction. Allocating her income in a way that just gives her the same marginal utility for each good (Option A) does not take into account the price of each good, which is important for making budgetary decisions. Option C is not a relevant choice for maximizing utility, as it does not relate directly to the allocation of income. Option D is not correct, as the optimal consumption point will generally lie on the budget constraint itself, not inside of it. Option E is not a relevant choice for maximizing utility, as total utilities cannot be directly compared across goods without normalization.

Suzy Spends All of Her Income on Potato Chips and Textbooks.To