Brenda is considering buying either a wool sweater for $80 or a leather jacket for $160. If Brenda buys the wool sweater, it must be true that the:

Question

Quizplus · Accepted Answer

The correct answer is D because if Brenda chooses the wool sweater over the leather jacket, it implies that the satisfaction (utility) she gets from the sweater is at least half that of the jacket, given the sweater costs half as much as the jacket. This does not necessarily mean the utility is twice as great, equal, or that the utility per dollar spent is greater for the jacket, as the other options suggest.

Brenda Is Considering Buying Either a Wool Sweater for $80