Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Buy 4 oranges
B
Buy 2 oranges and save $2
C
Buy 3 oranges
D
Buy 1 orange and save $3
Understanding the Answer
Let's break down why this is correct
Answer
Maria starts with a budget of $10 and spends $6 on 3 apples, since each apple costs $2. This leaves her with $4 to spend on oranges. Since she gets more satisfaction from each additional orange than from another apple after the third apple, she should use her remaining budget to buy oranges. At $1 each, she can buy 4 oranges, which gives her more total utility than if she spent the money on more apples. By choosing to buy oranges, Maria maximizes her satisfaction with her budget.
Detailed Explanation
Maria spends $6 on 3 apples. Other options are incorrect because This choice suggests saving money is better than getting more fruit; Buying 3 oranges doesn't use all her money.
Key Concepts
Marginal Utility
Consumer Choice
Budget Constraint
Topic
Marginal Utility and Consumer Choice
Difficulty
medium level question
Cognitive Level
understand
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