Suppose you have $20 to spend on pizza and coke. Suppose you spent all your money and that the marginal utility per dollar of the last slice of pizza you ate was 0 utils per dollar and the marginal utility per dollar of the last coke you drank was 8 utils per dollar. Subject to your budget constraint, you likely could have achieved a higher utility if you _____. a. ate more pizza and drank more coke. b. ate fewer pizzas and drank fewer cokes. c. ate fewer pizzas and drank more coke. d. ate more pizza and drank fewer cokes.

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.