When DVDs and hamburgers were the same price, Mavis consumed 3 hamburgers and 5 DVDs, and Mavis received 10 utils from the last hamburger and 15 utils from the last DVD consumed. What should be Mavis' consumption strategy?
A) consume more DVDs and fewer burgers
B) consume more burgers and fewer DVDs
C) consume more of both items
D) consume less of both items

Question

Quizplus · Accepted Answer

Mavis should consume more DVDs and fewer burgers because the marginal utility per dollar spent on DVDs is higher than that for hamburgers, indicating that DVDs provide more satisfaction per dollar spent.

When DVDs and Hamburgers Were the Same Price, Mavis Consumed