Question
A consumer spends all her income on jewelry and jeans, and the price of jewelry is three times the price of jeans. In order to
A consumer spends all her income on jewelry and jeans, and the price of jewelry is three times the price of jeans. In order to maximize her total utility, she should:
a. buy three times as much jewelry as pairs of jeans.
b. buy three times as many pairs of jeans as jewelry.
c. buy both items until the marginal utility of jewelry is three times the marginal utility of a pair of jeans.
d. buy both items until the marginal utility of a pair of jeans is three times the marginal utility of jewelry.
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
