Multiple Choice
Joe consumes pizza and movies. He is currently spending his entire income and his marginal utility of pizza is 15 and his marginal utility of movies is 10. If the price of a pizza is $10 and the price of a movie is $5, then to maximize his utility Joe should
A) increase consumption of pizza and decrease consumption of movies.
B) increase consumption of movies and decrease consumption of pizza.
C) not change his current bundle of movies and pizza.
D) increase consumption of both goods.
Correct Answer:
Verified
Correct Answer:
Verified
Q160: The marginal utility from the consumption of
Q161: Tommy buys only soda and pizza and
Q162: The Paradox of Value is resolved by
Q163: Pizza Pepsi<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt="Pizza Pepsi
Q164: Milkshakes Sodas<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt="Milkshakes Sodas
Q166: Joe consumes pizza and movies. Pizza and
Q167: Teddy buys only chocolate chip cookies and
Q168: If Mr. McConaughey has 7 hours to
Q169: Jeannie's marginal utility from her 4th book
Q170: Chips Sodas<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt="Chips Sodas