Aconsumer is making purchases of products alpha and beta such that the marginal utility of product alpha is 30 and the marginal utility of product beta is 40. the price of product alpha is $5, and the price of product beta is $10. the utility-maximizing rule suggests that, to stay within a given budget constraint, this consumer should

Increase consumption of product Alpha and decrease consumption of product Beta.

Explanation:

Marginal utility refers to the extra utility a consumer gets from one additional unit of a specific product. In a short period of time, the marginal utility derived from successive units of a given product will decline. This is known as diminishing marginal utility.

The utility maximizing rule explain/show consumers decide to allocatetheir money so that the last dollarspent on each product purchasedyields the same amount of extra(marginal) utility.

As long as one good provide more utility per dollar than another, the consumer will buy more of the first good.

The utility-maximizing rule helps to explain the substitution effect and the income effect. When the price of an item declines, the consumer will no longer be in equilibrium until more of the item is purchased and the marginal utility of the item declines to match the decline in price. More of this item is purchased rather than another relatively more expensive substitution.

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