
Carolyn spends her income on popular magazines and music CDs.If the price of a CD is four times the price of a magazine and if Carolyn is maximizing her utility, she buys
A) both goods until the marginal utility of the last CD purchased is four times the marginal utility of the last magazine purchased.
B) both goods until the marginal utility of the last magazine purchased is four times the marginal utility of the last CD purchased.
C) four times as many magazines as CDs.
D) four times as many CDs as magazines.
Correct Answer:
Verified
Q19: Which of the following is likely to
Q20: The law of diminishing marginal utility states
Q21: The demand curve for corn is downward
Q22: When the price of audio books, a
Q23: The substitution effect of an increase in
Q25: Consider a downward-sloping demand curve.When the price
Q26: If Ewan is consuming his utility maximizing
Q27: When the price of summer tank tops
Q28: If Valerie purchases ankle socks at $5
Q29: The income effect of an increase in
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