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Question 4 1 pts Carlos spends income on books and coffee. Coffee costs $4, books cost $10, and at his current consumption bundle the marginal
Question 4 1 pts Carlos spends income on books and coffee. Coffee costs $4, books cost $10, and at his current consumption bundle the marginal utility of coffee is 20 utils and the marginal utility of books is 60 utils. Therefore: 0 Carlos could increase utility by buying more coffee and fewer books. 0 Carlos makes consumption decisions in line with what Homo Economicus would choose. 0 Carlos could increase utility by buying more books and less coffee. 0 Carlos is maximizing utility. Question 5 1 pts A rational, utility-maximizing consumer purchases dog beds and dog toys. At the optimal consumption bundle, the last dollar spent on each good yields the same amount of utility. If the price of dog beds falls and the consumer optimally responds by changing their consumption of these two goods, what will happen to the marginal utility of the last unit of each type of good consumed? O The marginal utility of dog beds will fall, the marginal utility of dog toys will fall. 0 The marginal utility of dog beds will fall, the marginal utility of dog toys will rise. O The marginal utility of dog beds will rise, the marginal utility of dog toys will fall. 0 The marginal utility of dog beds will rise, the marginal utility of dog toys will rise
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