-The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10 and Jane's budget is $88. What is Jane's marginal utility per dollar spent on magazines at her consumer equilibrium?
A) 36 units
B) 15 units
C) 9 units
D) 5 units

Question

-The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10 and Jane's budget is $88. What is Jane's marginal utility per dollar spent on magazines at her consumer equilibrium?
A) 36 units 
B) 15 units 
C) 9 units 
D) 5 units

Quizplus · Accepted Answer

At consumer equilibrium, the marginal utility per dollar spent on magazines equals the marginal utility per dollar spent on CDs. Given the prices, the marginal utility per dollar for magazines is calculated as the marginal utility of magazines divided by $4. The correct answer is 5 units, as it balances with the CDs' marginal utility per dollar.

-The Table Above Gives Jane's Total Utility from Magazines and CDs