Multiple Choice
If Ellie Mae spends her income on possum and biscuits and the price of possum is three times the price of biscuits, then when Ellie Mae maximizes total utility, she will buy
A) equal quantities of possum and biscuits
B) three times as much possum as biscuits
C) three times as many biscuits as portions of possum
D) biscuits and possum until the marginal utility of possum is three times the marginal utility of biscuits
E) biscuits and possum until the marginal utility of biscuits is three times the marginal utility of possum
Correct Answer:
Verified
Correct Answer:
Verified
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