Question

Assume that product Gamma is priced at $5 per unit while product Delta is priced at...

Assume that product Gamma is priced at $5 per unit while product Delta is priced at $3 per unit and that Phoebe has $25 to spend on Gamma and Delta. The marginal utility of Gamma is 20 and the marginal utility of Delta is 15. This indicates that:

Select one:

A. given another dollar, Phoebe should buy an additional unit of Gamma.

B. Phoebe should make no change in consumption.

C. in order to maximize utility, Phoebe should buy more of Gamma and less of Delta.

D. in order to maximize utility, Phoebe should buy more of Delta and less of Gamma.

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