For two goods,coffee and scones,MU(coffee)/P(coffee)= 4 and MU(scones)/P(scones)= 3.The consumer should
A)purchase less coffee and more scones.
B)purchase more coffee and fewer scones.
C)purchase less coffee and fewer scones.
D)purchase more coffee and more scones.

Question

Quizplus · Accepted Answer

The consumer should purchase more coffee and fewer scones because the marginal utility per dollar spent on coffee is higher than that on scones, indicating that they get more utility per dollar from coffee.

For Two Goods,coffee and Scones,MU(coffee)/P(coffee)= 4 and MU(scones)/P(scones)= 3