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Claudia Spends All of Her Income on Warm-Up Suits and Running

Question 32

Multiple Choice

Claudia spends all of her income on warm-up suits and running shoes, and the price of a warm-up suit is four times as large as the price of a pair of shoes. Then, in order to maximize total utility, Claudia should


A) buy four times as many warm-up suits as pairs of running shoes.
B) buy four times as many pairs of running shoes as warm-up suits.
C) divide her income equally between warm-up suits and running shoes.
D) buy both items until the marginal satisfaction of a warm-up suit is four times the marginal satisfaction of a pair of running shoes.

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