Suppose a cup of tea costs $0.60 and a scone costs $1.20. If Edith spends all of her income on these two goods, and at her current level of consumption, she receives a marginal utility of 6 utils from the last cup of tea she buys and a marginal utility of 24 utils from the last scone she buys, then Edith should:

A. buy more tea and fewer scones.
B. not change her consumption of tea and scones.
C. buy more tea and more scones.
D. buy less tea and more scones.


Answer: D

Economics

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