If a person could increase total utility by purchasing more candy and fewer apples,then the
A)total utility from candy must exceed the total utility from apples
B)marginal utility of candy must exceed the marginal utility of apples
C)marginal utility per dollar spent on candy must exceed the marginal utility per dollar spent on apples
D)total utility per dollar spent on candy must exceed the total utility per dollar spent on apples
E)marginal utility per dollar spent on candy must be less than the marginal utility per dollar spent on apples

Question

Quizplus · Accepted Answer

The person should allocate their budget such that the marginal utility per dollar spent is equal across all goods. If they can increase total utility by buying more candy and fewer apples, it means the marginal utility per dollar spent on candy is higher than that on apples.

If a Person Could Increase Total Utility by Purchasing More