Javier spends all his income on peanuts and chewing gum. The last dollar spent on peanuts yeilds 14 utils and the last dollar spent on chewing gum yields 6 utils. To increase total utility, Javier should spend less on peanuts and more on chewing gum?

To increase total utility, Javier should spend less on peanuts and more on chewing gum - false

Total utility is the measure of the total level of satisfaction that is obtained as a result of consuming the available quantity of goods or services. This different fro marginal utility which is the measure of total stratification that is obtained from the consumption of an additional quantity of goods or services.

In the example given, Javier is spending his income entirely on the chewing gums and peanuts. The dollars that remains is yielding  14 utils and 6 utils in spending for peanuts and chewing gums respectively. Total utility will not get increased with the either consumption because it includes the consumption of both peanuts and also  chewing gums. Thus the given statement will be false.

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