Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2 . Mr. Max has only $20 to spend. If the marginal utility of the fourth unit of A is 12 and the marginal utility of the sixth unit of B is 12, then:
a. he should not buy anything.
b. he should buy more of A and less of B.
c. he should buy less of A and more of B.
d. he should buy A and B in the quantities indicated.
e. he should buy more of A and little more than that of B.
d
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Consumer Financial Protection Bureau (CFPB) established 2010 ?
An aggregate supply curve depicts the relationship between
A) the price level and the quantity of nominal GDP supplied. B) household expenditures and household income. C) the price level and the quantity of real GDP supplied. D) the money wage rate and the quantity of real GDP supplied.
When the price elasticity of demand for a good equals
A) 0, the demand curve is vertical. B) 0, the demand curve is horizontal. C) 1, the demand curve is vertical. D) 1, the demand curve is horizontal.
After full adjustment to a price change has occurred, the absolute price elasticity of demand for an item is equal to 1. In the short run, the absolute price elasticity of demand for the item was probably
A) less than 0. B) greater than 0. C) less than 1. D) greater than 1.