The diagram illustrates the market price and equilibrium quantity of coffee consumed by one person, Jo. Jo purchases X cups of coffee at $2 per cup when she goes to her preferred café. While she is there, the café owner tells her that unlimited free refills are available. How is her consumption most likely to change?
- AJo’s demand for coffee will increase from X to Y where her total utility for coffee is zero.
- BJo’s demand for coffee will increase from X to Y where her marginal utility for coffee is zero.
- CJo will not drink extra coffee because its marginal utility is less than $2.
- DJo will not drink extra coffee because her total utility will fall.