Reeta buys only compact discs and tapes and spends all her income. The marginal

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Reeta buys only compact discs and tapes and spends all her income. The marginal utility from a compact disc is 30 and the marginal utility from a tape is 20. The price of a compact disc is INR 15 and the price of a tape is INR 10. To maximize her utility, Reeta should

Options:

A . increase her consumption of compact discs

B . Increase her consumption of tapes

C . not change her consumption of compact discs and tapes

D . lower the price of a tape

Answer: Option C
:
C

M C_{C D s} / P_{C D s} = M U_{t a p e} / P_{t a p e}

. Reeta is already maximizing her utility.

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