Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A consumer spends all of his money on two goods: apples and oranges. The consumer will pay $10 for apples, but only $1 for oranges.

A consumer spends all of his money on two goods: apples and oranges. The consumer will pay $10 for apples, but only $1 for oranges. Why does the consumer pay more for apples?

1) His marginal utility from apples is higher than his marginal utility from oranges.

2) His marginal utility from oranges is higher than his marginal utility from oranges.

3) The consumer is irrational and simply likes apples better.

4) His total utility is higher from apples than oranges.

5) His total utility is higher from oranges than apples.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Economics Methods And Techniques

Authors: Chandra Kant Singh

1st Edition

9353147018, 9789353147013

More Books

Students also viewed these Economics questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago