Answered step by step
Verified Expert Solution
Link Copied!

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

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

Introductory Econometrics A Modern Approach

Authors: Jeffrey M. Wooldridge

4th edition

978-0324581621, 324581629, 324660545, 978-0324660548

More Books

Students also viewed these Economics questions

Question

Identify the benefits and challenges of CRM along with its future.

Answered: 1 week ago

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago

Question

4. What means will you use to achieve these values?

Answered: 1 week ago

Question

3. What values would you say are your core values?

Answered: 1 week ago