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Scenario 4.1: Daniel Derives Utility from Only Two Goods, Cake (Qc) and (Qc)

Question 52

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Scenario 4.1:
Daniel derives utility from only two goods, cake (Qc) and donuts (Qd) . The marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given as follows:
MUc = Qd MUd = Qc
Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3.
-See Scenario 4.1. What is Daniel's income-consumption curve?


A) Pc = Pd
B) Pc = Qc
C) Qd = I - 3Qc
D) Qc = Qd
E) all of the above

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