Consider a consumer who spends all income on only
two goods: bread and wine. An extra loaf of bread
would give the consumer 10 extra utils, while an
extra bottle of wine would give the consumer 60
extra utils. Bread costs 50 cents per loaf, and wine
costs $6 per bottle. In this situation, the consumer
a. could increase utility by buying more bread and
less wine.
b. could increase utility by purchasing more wine
and less bread.
c. has maximized utility and attained the consumer
equilibrium.
d. is violating the law of diminishing marginal utility.