Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 7 - Consumer Choice: Utility Theory and Insights from Neuroscience - Exercises - 7.1 Traditional Consumer Choice: Utility Theory - Page 177: 1.9

Answer

decrease songs increase movies

Work Step by Step

The marginal utility for movies is $\frac{30\ util}{6\ dollar}=5\frac{util}{dollar}$ The marginal utility for songs is $3\frac{util}{dollar}$ Since the marginal utility per dollar for movies is higher, the ration of movies to songs should be increased to maximize utility.
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