The price of a hotdog is $1, the price of a movie ticket is $5, and the consumer has $13. A consumer has purchased 3 hotdogs and two movie tickets, receiving 10 units of utility for the last hotdog and 10 units of utility for the last movie. The set of goods
A) is an optimum since the entire income is spent and the marginal utility is the same for the last unit of each good.
B) is an optimum because the consumer has maximized her utility given the limited income she had.
C) is not an optimum because the marginal utility per dollar spent is greater for the hotdog than for the movie.
D) is not an optimum because the marginal utility for the second hotdog was less than the marginal utility for the first hotdog.
Correct Answer:
Verified
Q194: Consumers do NOT buy as many units
Q195: Q196: Consumers usually buy fewer units of a Q197: The consumer optimum is defined as Q198: When the marginal utility per dollar of Q200: Q201: John is going to spend all of Q202: The price of a piece of pizza Q203: John is going to spend all of Q204: 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
A) the