While at the grocery store, Sidney sees that the price of Grape-Nuts is twice that of Cheerios. If Sidney buys both goods, then Sidney must:
A) get twice as much marginal utility from Grape-Nuts as from Cheerios.
B) get twice as much marginal utility from Cheerios as from Grape-Nuts.
C) not be maximizing utility.
D) buy twice as much Cheerios.

Question

Quizplus · Accepted Answer

Sidney should get twice as much marginal utility from Grape-Nuts as from Cheerios to maximize utility, given that Grape-Nuts is twice as expensive.

While at the Grocery Store, Sidney Sees That the Price