Laurie spends all of her money buying bread and cheese.The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30.The price of bread is $3 and the price of cheese is $2.Laurie
A) should buy more cheese and less bread in order to maximize her utility.
B) should buy more bread and more cheese in order to maximize her utility.
C) should buy more bread and less cheese in order to maximize her utility.
D) is buying bread and cheese in utility- maximizing amounts.
E) is spending too much money on bread and cheese.
Correct Answer:
Verified
Q24: If all consumers in an economy have
Q25: If consumption of an extra unit of
Q26: Given a typical downward- sloping demand curve
Q27: Suppose a consumer can purchase only two
Q28: Suppose Arun consumes only 2 goods -
Q30: A consumer maximizes his or her utility
Q31: When a consumer's marginal rate of substitution
Q32: Bjorn is a student with a monthly
Q33: The paradox in "the paradox of value"
Q34: Suppose a consumer can purchase only two
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents