Alex Wants to Maximize His Utility

Multiple Choice

Alex wants to maximize his utility. At his current level of consumption, Alex's marginal utility from an additional cup of coffee is 15 utils, and his marginal utility from an additional can of soda is 11 utils. If the price of a cup of coffee is $3 and the price of a can of soda is $2, Alex should:

A) reallocate his spending away from coffee and towards soda.
B) reallocate his spending away from soda and towards coffee.
C) not change his consumption of either coffee or soda.
D) decrease his spending on both coffee and soda.