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Penelope’s ratio of marginal utility for a books to crayons (MUB / MUC) is 3/1, while...

Penelope’s ratio of marginal utility for a books to crayons (MUB / MUC) is 3/1, while the price ratio of books to crayons (PB / PC) is 1.5/1.0. Which of the following is/are true? Hint: you can approach this question by considering the marginal rate of substitution relative to the price ratio (as presented), or you can cross-multiple to put it into the MUB / PB and MUC / PC format.

A. Penelope can increase utility by decreasing her consumption of books by 4 units and increasing her consumption of crayons by 6 units.

B. One more book provides Penelope with 3 times the utility of one more box of crayons.

C. Penelope can increase utility by decreasing her consumption of crayons by 1 unit and increasing her consumption of books by 1.5 units.

D. Penelope can increase utility by decreasing her consumption of crayons by 3 units and increasing her consumption of books by 2 units.

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