If the last $5 spent on movies added 30 utils to your total satisfaction and the last $8 spent on books add 64 utils,
A) you can increase your satisfaction by buying more books and seeing fewer movies.
B) your total satisfaction is 94 utils.
C) you can increase your satisfaction by buying fewer books and seeing more movies.
D) you can increase your satisfaction by buying only books.

Question

Quizplus · Accepted Answer

The marginal utility per dollar for books is higher than for movies. Spending $1 on books adds 8 utils ($8/1), while spending $1 on movies only adds 6 utils ($30/5). Therefore, buying more books and fewer movies will result in a higher total satisfaction.

If the Last $5 Spent on Movies Added 30 Utils