John and Sally have identical preferences except Sally's utility units are exactly 10 times that of John's.Both have the same income and face the same prices.Choose the best response.
A)John consumes 10 times the amount that Sally consumes.
B)John receives 1/10 the satisfaction that Sally receives.
C)Both will consume the same amount of all goods.
D)John and Sally will have equal total utility.
E)John and Sally will have equal marginal utility.

Question

Quizplus · Accepted Answer

Since John and Sally have identical preferences, the same income, and face the same prices, they will consume the same amount of all goods to maximize their utility, regardless of the scale of their utility units.

John and Sally Have Identical Preferences Except Sally's Utility Units