Jie consumes three heads of broccoli and six bowls of rice each week. The price of a head of broccoli is $2 and the price of rice is $4 per bowl. Jie's marginal utility from the last head of broccoli consumed is 4 utils and her marginal utility from her last bowl of rice is 8 utils. If Jie wants to maximize her utility, she should:
A) increase her broccoli consumption and decrease her rice consumption.
B) increase her rice consumption and decrease her broccoli consumption.
C) not change her consumption of either broccoli or rice.
D) stop consuming both goods.
Correct Answer:
Verified
Q122: Tonya's budget constraint for gasoline (G) and
Q124: Use the following to answer questions:
Q125: George has a weekly income (I) of
Q126: George has a weekly income (I) of
Q128: The marginal decision on how to allocate
Q129: Consumption of more of a good that
Q130: Tonya's budget constraint for gasoline (G) and
Q131: George has a weekly income (I) of
Q132: If marginal utility is diminishing, the marginal
Q179: The consumption bundles that Mei CAN afford
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