Joe Consumes Pizza and Movies

question 165

Multiple Choice

Joe consumes pizza and movies. He is currently spending his entire income and his marginal utility of pizza is 15 and his marginal utility of movies is 10. If the price of a pizza is $10 and the price of a movie is $5, then to maximize his utility Joe should

• A) increase consumption of pizza and decrease consumption of movies.
• B) increase consumption of movies and decrease consumption of pizza.
• C) not change his current bundle of movies and pizza.
• D) increase consumption of both goods.

---

Definitions:

Tilt

The angle at which a geological formation, like Earth's axis, deviates from the vertical or horizontal.

Glaciers

Large, moving masses of ice that form by the accumulation and compaction of snow, known for shaping landscapes through processes like erosion and deposition.

Seasonal Effects

Variations or changes in biological, environmental, or social systems that are due to seasonal variations in the Earth's position relative to the sun.

Tilt

The inclination of an object, layer, or surface, often measured in degrees from the horizontal plane.