Multiple Choice
Suppose Joe is maximising total utility within his budget constraint.If the price of the last pair of jeans purchased is $25 and it yields 100 units of extra satisfaction and the price of the last shirt purchased is $20, then, using the rule of equal marginal utility per dollar spent, the extra satisfaction received from the last shirt must be
A) 2000 units of utility.
B) 500 units of utility.
C) 100 units of utility.
D) 80 units of utility.
Correct Answer:
Verified
Correct Answer:
Verified
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