(Figure: Water Vs

Multiple Choice

(Figure: Water vs. Soda) Refer to the figure. The figurerepresents the marginal utility Janet receives when sheconsumes bottled water and soda. The prices of bottled waterand sodas are both $1 each. Janet has $2 to spend andconsumes two bottles of water and no soda.

A) She would be better off if she consumed one bottle of water and one soda.
B) She would be better off if she consumed two sodas instead of two bottles of water.
C) She is maximizing her utility.
D) The marginal utility of soda will be higher than the marginal utility of bottled water.