Jennifer consumes both apples and bread. Let Pa be the price of an apple and Pb the price of a loaf of bread. TUa is her total utility from apples and TUb is her total utility from bread
MUa is her marginal utility from apples and MUb is her marginal utility from bread. When Jennifer is in consumer equilibrium A) MUa/TUa = MUb/TUb.
B) MUa/Pb = MUb/Pa.
C) MUa/Pa = MUb/Pb.
D) TUa/Pb = TUb/Pb.
C
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According to your authors, the "boom" phase of the so-called "business cycle" is
A) caused by an expansionary increase of the money supply. B) a systematic accumulation of mistakes among businesses and households across the economy. C) undertaken because business planners miscalculate the expected profitability of their new ventures. D) ultimately followed by a recessionary "bust" as people begin to correct for the mistakes they've made during the boom phase of the cycle. E) described correctly by all of the above statements.
Which of the following is most important in explaining exchange rate fluctuations in the short run?
A) relative price levels across countries B) relative rates of productivity growth across countries C) preferences for domestic and foreign goods D) interest rates
Suppose our economy is in macroeconomic equilibrium with an upward-sloping aggregate supply curve and a downward-sloping aggregate demand curve. An increase in aggregate demand will
A. increase aggregate supply. B. decrease the price level. C. cause the aggregate supply curve to shift to the right. D. increase real GDP.
Assume Congress decides that oil companies are making too much profit and decides to tax oil companies for each gallon of gasoline produced. This would
A) shift the marginal cost curve up. B) shift the marginal cost curve down. C) shift the average fixed cost curve up. D) shift the average fixed cost curve down.