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 Snacks:

violate the law of diminishing marginal utility.
have no budget constraint.
have increasing costs of production.
violate the equimarginal principle.

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 meat.
should buy more candy and less meat.
should buy more meat and more candy.
is buying meat and candy in the right proportions.

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