Christine is allocating her household expenditure between cleaning services and gardening services in order to maximize the household's total utility.For the quantities of cleaning and gardening services she has chosen,an increase in the price of cleaning service will,ceteris paribus,
A) increase the marginal utility of a unit of cleaning service.
B) reduce the marginal utility per dollar spent on cleaning service.
C) reduce the marginal utility of a unit of cleaning service.
D) increase the marginal utility per dollar spent on cleaning service.
E) have no effect on the marginal utility per dollar spent on cleaning service.
Correct Answer:
Verified
Q24: Q25: A consumer maximizes his or her utility Q26: Q27: Consider a consumer who divides his income Q28: The table below shows the quantities of Q30: The Smith family is allocating its monthly Q31: The table below shows the quantities of 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