Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Justin spends all his money on surfboards and food. His last surfboard purchased cost $500 and his last unit of food cost $5. Based on
Justin spends all his money on surfboards and food. His last surfboard purchased cost $500 and his last unit of food cost $5. Based on this, if Justin is acting rationally, which of the following is true? (2 points) Justin fails to recognize that surfboards are a luxury and food is a necessity to survive. Justin gains a higher marginal utility from the surfboard than from the food. Food is more scarce than surfboards. There is a higher demand for surfboards than from food. Justin gained more total utility from food than from surfboards
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started