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For Dessert, Ingrid Has the Choice Between Cheesecake and Apple

Question 12

Multiple Choice

For dessert, Ingrid has the choice between cheesecake and apple pie. Ingrid would gain marginal utility of 50 from a piece of cheesecake, while the price of cheesecake is €5 per slice., Ingrid would gain marginal utility of 30 from a piece of apple pie, and the price of apple pie is €3 per slice. Given this information, Ingrid should buy


A) the cheesecake.
B) the apple pie.
C) two servings of the apple pie and no cheesecake.
D) either the apple pie or the cheesecake; it makes no difference to Ingrid at this point.

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