Multiple Choice
Suppose that at Miles's current level of consumption, his marginal utility from a pizza is 10 utils, and his marginal utility from a pint of ice cream is 16 utils. If the price of a pizza is $8, and the price of a pint of ice cream is $5, is Miles maximizing his utility?
A) No. He should shift his spending away from ice cream and towards frozen pizza.
B) No. He should buy less frozen pizza and less ice cream.
C) No. He should shift his spending away from frozen pizza and towards ice cream.
D) Yes. He should not change his spending on frozen pizza and ice cream.
Correct Answer:
Verified
Correct Answer:
Verified
Q80: The accompanying figure shows the demand curve
Q81: Cory gets 18, 23, and 25 units
Q82: Refer to the accompanying figure. What is
Q83: The accompanying figure shows a a single consumer's
Q84: The tendency for consumers to purchase more
Q86: For two goods, A and B, the
Q87: Refer to the accompanying table. If the
Q88: Refer to the accompanying figure. At the
Q89: Assume that Dusty has $30 in income,
Q90: It is impossible for total utility to