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Aplia Homework: Consumer Choice and Demand Back to Assignment Attempts Keep the Highest / 2 3. Balancing utility and price Suppose Shen has to choose between purchasing jewelry and water. Which of the following is the utility-maximizing rule that Shen should follow while choosing the optimal quantities of these two goods? (Note: In the answer options that follow, MU stands for "marginal utility.") MU of Water 4 11 MU of Jewelry O Price of Jewelry Price of Water O MU of Water = MU of Jewelry O (MU of Water) x (Price of Water) = (MU of Jewelry) x (Price of Jewelry) MU of Water MU of Jewelry O Price of Water Price of Jewelry Since water costs little and jewelry is expensive, it must follow that when people choose their optimal quantities of water and jewelry to purchase, the marginal utility they receive from the last piece of jewelry they buy is than the marginal utility they receive from the last gallon of water they buy. Grade It Now Save & Continue Continue without saving