If the last $5 spent on movies added 30 utils to your total satisfaction and the last $8 spent on books add 56 utils
A) you can increase your satisfaction by buying more books and seeing fewer movies.
B) your total satisfaction is 86 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 spent on books (56 utils/$8 = 7 utils per dollar) is higher than that for movies (30 utils/$5 = 6 utils per dollar), suggesting that shifting spending towards books from movies would increase total satisfaction.

If the Last $5 Spent on Movies Added 30 Utils