Lata likes to eat burgers and has already eaten two. Her marginal utility from the last burger she consumes is 90 utils. If the price of burger is…

Option 1 -> MU/Price (90/25 = 3.6) > MU of money (3), so she should consume more burgers.

Option 2 -> Incorrect, as consuming less would move her further from equilibrium.

Option 3 -> Incorrect, she is not in equilibrium since MU/P ≠ MU of money.

Option 4 -> Incorrect, sufficient information is provided to determine behavior.

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Hence, Option 1: Lata should increase the consumption of burgers to attain equilibrium. -> The consumer equilibrium condition states that MU/Price should equal MU of money. Here, MU of burger per rupee = 90/25 = 3.6 utils, while MU of money = 3 utils. Since 3.6 > 3, Lata is getting more satisfaction per rupee from burgers than from other goods. She should consume more burgers until the MU falls (due to diminishing marginal utility) and MU/P = 3, achieving equilibrium. -> correct