Prashanth decides to buy a $75 ticket to a particular New York professional hockey game rather than a $50 ticket for a particular Broadway play. We can conclude that Prashanth
A)is relatively unappreciative of the arts.
B)obtains more marginal utility from the play than from the hockey game.
C)has a higher "marginal utility-to-price ratio" for the hockey game than for the play.
D)has recently attended several other Broadway plays.

Question

Quizplus · Accepted Answer

Prashanth's decision to buy a more expensive ticket for a hockey game over a cheaper ticket for a Broadway play suggests that he perceives a higher marginal utility-to-price ratio from the hockey game. This means he believes the satisfaction (utility) he gets from the hockey game, relative to its cost, is greater than that from the play.

Prashanth Decides to Buy a $75 Ticket to a Particular