Solved

-Juan's Marginal Utility from Strawberries Is 200 and His Marginal

Question 78

Multiple Choice

  -Juan's marginal utility from strawberries is 200 and his marginal utility from cream is 100. Juan spends all of his budget. The price of strawberries is $5 per kilogram and the price of cream is $5 per pint. To maximise his utility, Juan should A)  change nothing because Juan is maximising his utility now. B)  buy more cream and fewer strawberries. C)  buy less cream and fewer strawberries. D)  buy less cream and more strawberries. E)  buy more cream and more strawberries.
-Juan's marginal utility from strawberries is 200 and his marginal utility from cream is 100. Juan spends all of his budget. The price of strawberries is $5 per kilogram and the price of cream is $5 per pint. To maximise his utility, Juan should


A) change nothing because Juan is maximising his utility now.
B) buy more cream and fewer strawberries.
C) buy less cream and fewer strawberries.
D) buy less cream and more strawberries.
E) buy more cream and more strawberries.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents