Suppose the price of an apple is $0.75, and the price of a banana is $0.50. If Hugh is maximizing his utility, and his marginal utility from consuming an apple is 24 utils, then his marginal utility from consuming a banana must be:
A. 32 utils.
B. 16 utils.
C. 12 utils.
D. 36 utils.
Answer: B
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According to chapter 1 in your textbook, while economic theory offers a biased perspective on social phenomena,
A) it deserves our confidence, but only when it is confined to the monetary or financial sector of society. B) it is useless to anyone who rejects the free market system. C) it is nonetheless worth learning. D) it is superior to all the other social sciences.
A surplus exists in the market for Barbie dolls at the prevailing price. The surplus will be eliminated by a price: a. increase, decreasing the supply and increasing the demand
b. decrease, decreasing the supply and increasing the demand. c. decrease, increasing the quantity supplied and increasing the quantity demanded. d. decrease, decreasing the quantity supplied and increasing the quantity demanded.
Lines, ration coupons, and black markets are symptoms of a
a. price floor. b. price ceiling. c. free market. d. barter economy.
Situation in which quantity demanded is greater than quantity supplied:
a. supply shock b. shortage c. excess supply d. disequilibrium e. search costs