Jen consumes 5 DVDs and 2 tacos. She receives 500 units of utility from her 5th DVD and 200 units of utility from her 2nd taco. The price of a DVD is $10, the price of a taco is $4, and she is spending her entire budget. Which of the following is true regarding Jen's choices?
A) Jen is consuming on her demand curve for DVDs.
B) Jen is consuming on her demand curve for tacos.
C) Jen is maximising utility.
D) Only answers A and B are correct
E) Answers A, B and C are correct.
Correct Answer:
Verified
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