The marginal utility per dollar from pizza is greater than the marginal utility per dollar from pop.To maximize utility,a consumer buys
A)less pizza and more pop.
B)equal quantities of pizza and pop.
C)more pizza and less pop.
D)more pizza and more pop.
E)less pizza and less pop.

Question

Quizplus · Accepted Answer

Since the marginal utility per dollar from pizza is greater than the marginal utility per dollar from pop, the consumer should buy more pizza and less pop to maximize their overall utility. This is because for every additional dollar spent on pizza, the consumer is gaining more marginal utility than they would from spending that same dollar on pop. Therefore, by allocating more of their budget towards pizza, the consumer can maximize their overall utility.

The Marginal Utility Per Dollar from Pizza Is Greater Than