Shipping the Good Apples​ Out?
Suppose apples come in two quality​ levels, low quality and high quality. At a store in the​ apple-growing region, the price of​ low-quality apples is ​$3 per​ pound, and the price of​ high-quality apples is ​$6 per pound.
Timmy lives in the​ apple-growing region and buys 8 pounds of each type. His marginal utility of​ low-quality apples is 9 utils and his marginal utility of​ high-quality apples is 18 utils.
Is Timmy maximizing his​ utility?

A. Yes. The marginal utility of high quality apples is greater than the marginal utility of low quality apples.
B. No. The marginal utility per dollar of​ low-quality apples is greater than the marginal utility per dollar of​ high-quality apples.
C. No. The marginal utility per dollar of​ high-quality apples is greater than the marginal utility per dollar of​ low-quality apples.
D. Yes. The marginal utility per dollar of each good is equal.

Suppose that Timmy moves to an area outside the​ apple-growing region. As a result of increased shipping​ costs, the price of both​ low-and high-quality apples increases by​ $2 per pound in his new area. Suppose further that Timmy is still able to consume 8 pounds of each type of apple. In this new​ scenario, is Timmy maximizing his​ utility?

A. No. The marginal utility per dollar of​ high-quality apples is greater than the marginal utility per dollar of​ low-quality apples.
B. No. The marginal utility per dollar of​ low-quality apples is greater than the marginal utility per dollar of​ high-quality apples.
C. Yes. The marginal utility of high quality apples is greater than the marginal utility of low quality apples.
D. Yes. The marginal utility per dollar of each good is equal.