Multiple Choice
If Mr. Smith thinks the last dollar spent on shirts yields less satisfaction than the last dollar spent on cola, and Mr. Smith is a utility-maximizing consumer, he should:
A) decrease his spending on cola.
B) decrease his spending on cola and increase his spending on shirts.
C) increase his spending on shirts.
D) increase his spending on cola and decrease his spending on shirts.
Correct Answer:

Verified
Correct Answer:
Verified
Q9: Assume the total utilities corresponding to the
Q10: Eric is maximizing his total utility through
Q12: Suppose that the price of telephones decreases.
Q13: Exhibit 6-7 Marginal utility for sandwiches and
Q15: Exhibit 6-7 Marginal utility for sandwiches and
Q16: Use the idea of interpersonal comparisons of
Q17: Exhibit 6-3 Marginal utility data for goods
Q18: Exhibit 6-2 Total utility for hamburgers, fries,
Q19: If marginal utility is positive, then total
Q198: Which of the following is the best