To increase total utility, Javier should spend less on peanuts and more on chewing gum - false
Total utility is the measure of the total level of satisfaction that is obtained as a result of consuming the available quantity of goods or services. This different fro marginal utility which is the measure of total stratification that is obtained from the consumption of an additional quantity of goods or services.
In the example given, Javier is spending his income entirely on the chewing gums and peanuts. The dollars that remains is yielding 14 utils and 6 utils in spending for peanuts and chewing gums respectively. Total utility will not get increased with the either consumption because it includes the consumption of both peanuts and also chewing gums. Thus the given statement will be false.
