Suppose That the Price of a Pizza Is $10 and That

question 113

Multiple Choice

Suppose that the price of a pizza is $10 and that the price of a blouse is $30.At her present level of consumption,Magda's ratio of marginal utility of pizza to marginal utility of blouses is 1/4.To maximize total utility,she should

• A)buy more pizzas and fewer blouses
• B)buy fewer pizzas and more blouses
• C)continue to buy the same quantities of pizza and blouses
• D)spend more time consuming pizza
• E)spend more time buying blouses

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