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Sarah Can Consume Either Pizzas or Hamburgers

Question 64

Multiple Choice

Sarah can consume either pizzas or hamburgers. The price of a hamburger is $1 and the price of a pizza is $5. Let MUh be the marginal utility of hamburgers and MUp be the marginal utility of pizzas. In consumer equilibrium, what must the ratio MUh/MUp equal?


A) 1/5
B) 5/1
C) 1/1
D) 1/6
E) 4

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