Suppose that apples and bananas both cost the same,but the marginal utility of bananas is twice as high as that for apples.The consumer should purchase more apples and fewer bananas in order to maximize utility.

Question

Quizplus · Accepted Answer

If the marginal utility of bananas is twice as high as that for apples, then the consumer should purchase more bananas and fewer apples in order to maximize utility. This is because the consumer will derive more marginal utility per unit of money spent on bananas compared to apples.

Suppose That Apples and Bananas Both Cost the Same,but the Marginal