Multiple Choice
Amy spends all of her income on jewelry and jeans,and the price of a pair of jeans is three times the price of jewelry.In order to maximize total utility,Amy should
A) buy three times as much jewelry as pairs of jeans.
B) buy three times as many pairs of jeans as jewelry.
C) buy both items until the marginal utility of jewelry is three times the marginal utility of a pair of jeans.
D) buy both items until the marginal utility of a pair of jeans is three times the marginal utility of jewelry.
Correct Answer:
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