Use the table below to answer the following questions.
Table 8.2.1
-Refer to Table 8.2.1.Consider Sam's utility from sailing and skiing.If the price of sailing is $10 per hour and the price of skiing is $20 per hour,Sam will choose to spend
A)all his time sailing.
B)all his time skiing.
C)more time sailing than skiing.
D)more time skiing than sailing.
E)the same amount of time sailing and skiing.

Question

Use the table below to answer the following questions.
Table 8.2.1 
-Refer to Table 8.2.1.Consider Sam's utility from sailing and skiing.If the price of sailing is $10 per hour and the price of skiing is $20 per hour,Sam will choose to spend
A)all his time sailing. 
B)all his time skiing. 
C)more time sailing than skiing. 
D)more time skiing than sailing. 
E)the same amount of time sailing and skiing.

Quizplus · Accepted Answer

Sam will allocate more time to the activity that provides higher utility per dollar spent. If sailing offers more utility per dollar than skiing (given the prices), Sam will choose to spend more time sailing than skiing.

Use the Table Below to Answer the Following Questions