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Question
Emilia is trying to figure out what combination of bags of peanuts and bags of popcorn she should buy with her $13 budget. The price of peanuts is currently $3 per bag and the price of popcorn is currently $2 per bag. Emilia is currently deciding whether to purchase one more bag of peanuts or one more bag of popcorn. She should choose the
a. peanuts every time.
b. popcorn every time.
c. peanuts, if the marginal utility of peanuts is greater than popcorn.
d. popcorn, if the marginal utility of popcorn is greater than peanuts.
e. peanuts, if the last bag she consumed was popcorn, and vice versa.
Answer
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