A consumer has spent all of his income on pizza and movies. The price of a piece of pizza is $1 and the price of a movie is $6. The marginal utility of the last piece of pizza is 5 and the marginal utility of the last movie is 24. The consumer has

A. not maximized utility. He should cut back consumption of each good.
B. maximized utility.
C. not maximized utility. He should cut back on pizza and buy more movies.
D. not maximized utility. He should cut back on movies and buy more pizza.


Answer: D

Economics

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