If Jennie spends her income on ice cream and biscuits and the price of ice cream is three times the price of biscuits, then:
a. ?she buys biscuits and ice cream until the marginal utility of ice cream is three times the marginal utility of biscuits.
b. ?she maximizes her utility by buying equal quantities of ice cream and biscuits.
c. ?she maximizes her utility by buying three times as much ice cream as biscuits.
d. ?she maximizes her utility by buying three times as many biscuits as ice cream.
e. ?she buys biscuits and ice cream until the marginal utility of biscuits is three times the marginal utility of ice cream.
Answer: a. ?she buys biscuits and ice cream until the marginal utility of ice cream is three times the marginal utility of biscuits.
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