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(Solved): Phil is currently consuming both gin and tonic. The marginal utility of gin for Phil is 6 utils, whi ...



Phil is currently consuming both gin and tonic. The marginal utility of gin for Phil is 6 utils, while the marginal utility of tonic is 2 utils. Gin sells for $3 per ounce; tonic sells for $2 per ounce. To increase his happiness, Phil should A. do nothinghe is already maximizing his utility. - incorrect B. buy less gin and less tonic. C. buy less gin and use the freed-up income to buy more tonic. - incorrect D. buy less tonic and use the freed-up income to buy more gin. WARNING: OPTION (A) and (C) are INCORRECT.



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