Betty is maximizing her satisfaction from spending her budget on two items, movie rentals and music downloads. If her marginal utility from the last movie rental is twice that from the last music download, what is the price of a movie rental if the price of a music download is $0.80?
A) $0.40
B) $0.80
C) $1.20
D) $1.60

Question

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The Answer of Betty is maximizing her satisfaction from spending her budget on two items, movie rentals and music downloads. If her marginal utility from the last movie rental is twice that from the last music download, what is the price of a movie rental if the price of a music download is $0.80?
A) $0.40
B) $0.80
C) $1.20
D) $1.60

Betty Is Maximizing Her Satisfaction from Spending Her Budget on Two