Question

Tori devotes all of her income to the consumption of peanut butter and jelly. She has just discovered that at her current level of consumption the marginal utility of a jar of peanut butter is 5 and the marginal utility of a jar of jelly is 7. Which statement is TRUE? a. To maximize her total utility, Tori should consume less of both goods. b. To maximize her total utility, Tori should consume more peanut butter and less jelly. c. To maximize her total utility, Tori should consume more of both goods. d. There is not enough information provided to justify a change in Tori's level of consumption.

Answer 1

The correct answer is option A