Use the table below to answer the following questions.
Table 8.2.1

-Refer to Table 8.2.1. Consider Sam's utility from sailing and skiing. If the price of sailing is $10 per hour and the price of skiing is $20 per hour, Sam will choose to spend
A)all his time sailing.
B)all his time skiing.
C)more time sailing than skiing.
D)more time skiing than sailing.
E)the same amount of time sailing and skiing, since they give the same amount of utility.

Question

Use the table below to answer the following questions.
Table 8.2.1
 
-Refer to Table 8.2.1. Consider Sam's utility from sailing and skiing. If the price of sailing is $10 per hour and the price of skiing is $20 per hour, Sam will choose to spend
A)all his time sailing. 
B)all his time skiing. 
C)more time sailing than skiing. 
D)more time skiing than sailing. 
E)the same amount of time sailing and skiing, since they give the same amount of utility.

Quizplus · Accepted Answer

According to the table, Sam's marginal utility from sailing is higher than his marginal utility from skiing until he reaches 6 hours of sailing and 3 hours of skiing. After that point, his marginal utility from skiing becomes higher. Therefore, at the prices given, Sam will choose to spend more time sailing than skiing.

Use the Table Below to Answer the Following Questions