Question

The fact that rubies are more expensive than milk reflects the fact that for most consumers

• A. the total utility from rubies exceeds that from milk
• B. the marginal utility from rubies equals that from milk
• C. more milk is consumed than rubies
• D. a quart of rubies is prettier than a quart of milk

Answer 1

The correct option is C more milk is consumed than rubies

Because more milk is consumed, the MU from milk is lower than the MU from rubies.