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Answer :
Option (b), If Edith spends all of her money on these two goods and receives a marginal utility of 24 utils from her last scone and a marginal value of 6 utils from her last cup of tea at her current rate of consumption, she should buy more scones and less tea.
What does marginal utility actually mean?
Marginal utility is the enjoyment a consumer gains from having one extra unit of an item or service. Economists apply the theory of marginal utility to estimate how much of a specific item buyers will truly buy. Progressive taxation is frequently supported by the declining marginal utility rule.
The extra utility that occurs from consuming an additional unit of a commodity is known as marginal utility (MU). It is the fundamental Law of Utility approach to the equilibrium of the customer.
Economics uses the term "utility" to describe the pleasure or benefit derived from using a good. The marginal utility of a good or service measures how much pleasure or satisfaction consumers gain or lose when they increase or decrease their consumption by one unit. In three different ways, marginal utility exists.
Learn more about marginal utility: https://brainly.com/question/14149928
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The complete question is:
Suppose a cup of tea costs $0.60 and a scone costs $1.20. If Edith spends all of her income on these two goods, and at her current level of consumption, she receives a marginal utility of 6 utils from the last cup of tea she buys and a marginal utility of 24 utils from the last scone she buys, then Edith should:
Select one:
a. buy more tea and fewer scones.
b. buy less tea and more scones.
c. not change her consumption of tea and scones.
d. buy more tea and more scones.
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