Say's Party Snacks advertises its
products with the slogan, "The more you eat them, the
more you want them." This slogan suggests that Say's
violate the law of diminishing marginal utility.
have no budget constraint.
have increasing costs of
violate the equimarginal
Ms. Smith is buying 10 pounds of candy
and 8 pounds of meat each week. A pound of candy costs
$4.00 and a pound of meat costs $2.00. The marginal
utility of the last pound of candy that Ms. Smith bought
is 24 and the marginal utility of the last pound of meat
is 16. These data suggest that Ms. Smith:
should buy less candy and more
should buy more candy and less
should buy more meat and more candy.
is buying meat and candy in the right