Multiple Choice
Use the following to answer questions:
Figure: Comic Books and Coffee 2
-(Figure: Comic Books and Coffee 2) Refer to the figure. If a consumer has $2 to spend on comic books (priced at $1 per comic book) and coffee (price at $1 per cup) should the she buy two cups of coffee?
A) Yes, buying two cups of coffee maximizes her total utility.
B) Yes, because the marginal utility of the second comic book is less than the marginal utility of the second cup of coffee.
C) No, she should put back one cup of coffee (losing 16 utils) and replace it with a comic book (gaining 18 utils) .
D) No, she should buy two comic books to maximize utility.
Correct Answer:

Verified
Correct Answer:
Verified
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