Suppose That Reza Buys Two Products and That the Marginal

question 13

Multiple Choice

Suppose that Reza buys two products and that the marginal utility of an additional carton of soy milk is 20 and its price is $1.25,whereas the marginal utility for an additional orange costing 50 cents is 7.
-Refer to the above information to answer this question.What can be deduced?

• A)Reza should buy more oranges.
• B)Reza should reduce his consumption of soya milk.
• C)Reza should buy more soya milk.
• D)Reza should divide his budget equally between soya milk and oranges.
• E)Nothing can be deduced.

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