Assume oranges cost $5, and pears cost $4.Assume also that the next orange you consume would give you 30 units of satisfaction, while the next pear you consume would give you 20 units of satisfaction. According to Jevons, where would you put your next dollar? Why?At what point is there no reason to shift your dollars from either oranges to pears or pears to oranges? Why?

(You don't actually have to put downan equation here; you can explain it in words).

Imagine blood donations are made on a voluntary basis. Now imagine that a proposal is made to increase blood donations by offering a financial incentive. Are there any reasons you can think of why it may work less well than expected? Explain. What implications does this analysis potentially hold for the relationship between markets as an institution and "economic man."