Billy likes chocolate bars and popcorn.Chocolate bars sell for $1.50 each and popcorn sells for $3 a bag.Currently he is in consumer equilibrium with marginal utility per dollar on popcorn equal to 100.What is the marginal utility per dollar on chocolate bars?
A)50
B)100
C)200
D)25
E)0.5

Question

Quizplus · Accepted Answer

In consumer equilibrium, the marginal utility per dollar spent on all goods is equal. Since the marginal utility per dollar on popcorn is 100, the marginal utility per dollar on chocolate bars must also be 100.

Billy Likes Chocolate Bars and Popcorn