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# If Zurika’s marginal utility for a loaf of bread is 10 and for 500g of cheese is 30, her

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 ▲ 0 ▼ ♥ 0 If Zurika’s marginal utility for a loaf of bread is 10 and for 500g of cheese is 30, her [1] total utility would be maximised if the price of 550g cheese is triple the price of a loaf of bread. [2] total utility could be increased by buying more bread and less cheese. [3] total utility could be increased by buying more cheese and less bread. [4] total utility would be maximised if the price of 500g cheese is one-third the price of a loaf of bread.

### ✅ Answers (1)

 ▲ 0 ▼ ✔ Private answer [3] total utility could be increased by buying more cheese and less bread. Explanation In this scenario, the satisfaction obtained is directly proportional to the amount of cheese consumed compared to bread. If a 500g of cheese costs 30 while a loaf of bread costs 10, consuming more cheese than bread leads to an increase in total satisfaction. This is because the total utility is maximized when the ratio of cheese to bread is high. On the other hand, consuming more bread than cheese would result in a decrease in marginal utility, which means the additional satisfaction obtained from consuming each additional unit of bread would decline. Therefore, to maximize total utility, it is beneficial to purchase more cheese and less bread. By doing so, the consumer is able to achieve greater satisfaction from their consumption. Marked as spam Answered on August 19, 2021 2:25 pm

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