Consider a consumer who spends all income on only two goods: pizza and soda. An extra slice of pizza would give the consumer 60 extra utils, while an extra can of soda would give the consumer 20 extra utils. Pizza costs $3 per slice, and soda costs $1 per can. In this situation, the consumer:
a. is buying too much pizza and not enough soda.
b. should purchase more pizza and less soda.
c. has maximized his or her total utility.
d. needs to equate the marginal utilities for pizza and soda.
c
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The unregulated, single-price monopoly shown in the figure above will produce where its demand
A) equals its MC curve. B) equals its ATC curve. C) is inelastic. D) is elastic.
See Scenario 4.5. The Engel curve for grilled cheese sandwiches is:
A) downward sloping. B) horizontal. C) upward sloping. D) none of the above
According to your text, during the 2000s, the inflation rate was in which range of percentages?
A) 0-5% B) 5-10% C) 10-15% D) 15-20%
There are apartments in Chicago whose rooftops overlook Wrigley Field. On game day you can find free riders on the roof enjoying ____.
A. free property rights B. an externality C. a public good D. excess utility