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) increase the marginal utility per dollar spent on cleaning service.
C) have no effect on the marginal utility per dollar spent on cleaning service.
D) reduce the marginal utility of a unit of cleaning service.
E) reduce the marginal utility per dollar spent on cleaning service.

Question

Quizplus · Accepted Answer

The Answer of 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) increase the marginal utility per dollar spent on cleaning service.
C) have no effect on the marginal utility per dollar spent on cleaning service.
D) reduce the marginal utility of a unit of cleaning service.
E) reduce the marginal utility per dollar spent on cleaning service.

Christine Is Allocating Her Household Expenditure Between Cleaning Services and Gardening