Terence has $50 per week to spend on Subway sandwiches and milkshakes. The price

Question

Terence has $50 per week to spend on Subway sandwiches and milkshakes. The price of a Subway
sandwich is $5 and the price of a milkshake is $4. He buys 6 sandwiches and 5 milkshakes. The marginal utility
of the 6th sandwich is 25 and the marginal utility of the 5th milkshake is 32. Which of the following is true?
A) He is not maximizing his utility. He should buy more milkshakes and fewer sandwiches.
B) He is maximizing his utility.
C) He is not maximizing his utility and should buy more sandwiches and fewer milkshakes.
D) We need to know Terence

Explanation / Answer

B D A C B A

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