Paul consumes only books and DVDs. At his current consumption bundle, his marginal utility from DVDs is 16 and from books is 6. Each DVD costs $7, and each book costs $2. Is he maximizing his utility? Explain. Let MU be the marginal utility of books, MU be the marginal utility from DVDs, Pp be the price of books, P be the price of DVDs, and MRS be the marginal rate of substitution. Paul is MUB MUD O A. maximizing his utility because PB PD MUB O B. maximizing his utility because MRS = MUD MUB MUD O C. not maximizing his utility because PB PD MUB O D. not maximizing his utility because MRS > MUD MUB MUD O E. maximizing his utility because - > PB PD If he is not, how can he increase his utility while keeping his total expenditure constant? and fewer Paul could increase utility while keeping total expenditures constant by consuming more