Final answer:
To get more for your money, choose the item with the less expensive unit price, as this indicates a lower cost per standard measure of the product. Consider also the marginal utility per dollar, as maximizing utility involves gaining the most satisfaction or benefit within your budget.
Step-by-step explanation:
When considering which item gives you more for your money, the best choice is typically the one with the less expensive unit price. This is because the unit price reflects the cost per standard measure of the product (such as per ounce or per liter), which allows for a direct comparison regardless of package size or quantity. In other words, a lower unit price means you are getting more product for each dollar spent, making it a more economical choice.
However, it is also important to consider the marginal utility per dollar spent, which is the additional satisfaction or benefit received from purchasing one more unit of a good. As a general rule, to maximize utility you should choose the item that provides the greatest marginal utility per dollar until your budget is exhausted. This often means that, while unit price is important, the satisfaction or utility derived from the product also plays a crucial role in determining the best value for your money.
It is worth noting that the level of price and its impact depend on the elasticity of the product. Higher priced goods such as a video game console might be more price elastic than a candy bar. This means that people are more sensitive to price changes of expensive items than they are to inexpensive goods. Ultimately, for better value, one should focus on both the unit price and the utility gained from the product.