Jo loves mystical objects. Her marginal utility for the first tarot deck is very high but declines rapidly with each subsequent deck she buys. Her marginal utility for the first crystal is much lower but declines more slowly with each subsequent crystal she buys. Assuming the marginal utility per dollar she receives from the first tarot deck is higher than the marginal utility per dollar she receives from the first crystal, what could she do to reach consumer equilibrium?

a. Stop buying crystals completely and start buying tarot decks.
b. Stop buying tarot decks completely and start buying crystals.
c. Buy only tarot decks until their marginal utility per dollar equals that of the first crystal.
d. Buy only crystals until their marginal utility per dollar equals that of the first tarot deck.


c. Buy only tarot decks until their marginal utility per dollar equals that of the first crystal.

Economics

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Over long periods of time, M2 velocity has been relatively constant.

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Economics