greatest marginal utility per dollar of expenditure (assuming he can afford it with his remaining budget). José

starts with no purchases. If he purchases a T-shirt, the marginal utility per dollar spent will be 1.6. If he
purchases a movie, the marginal utility per dollar spent will be 2.3. Therefore, José’s first purchase will be the
movie. Why? Because it gives him the highest marginal utility per dollar and is affordable. Next, José will

purchase another movie. Why? Because the marginal utility of the next movie (2.14) is greater than the

marginal utility of the next T-shirt (1.6). Note that when José has no T- shirts, the next one is the first one. José

will continue to purchase the next good with the highest marginal utility per dollar until he exhausts his

budget. He will continue purchasing movies because they give him a greater "bang for the buck" until the sixth

movie which gives the same marginal utility per dollar as the first T-shirt purchase. José has just enough
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