Assume that for a given consumer, the marginal utility of wine is 100 and the price of wine is $60. Also, assume that the marginal utility of lobster is 200 and the price of lobster is $100. This consumer
A) is in equilibrium.
B) should buy more lobster.
C) should buy more wine.
D) can't tell; insufficient information given to answer the question
Answer: B
Economics
You might also like to view...
What is a patent used for?
a) to disseminate information b) to restrict ownership c) to protect inventors for as long as they live d) to assign property rights
Economics
The Herfindahl-Hirschman (HH) Index is used to
A) measure the degree of nonprice competition. B) measure the degree of market concentration in an industry. C) measure the extent of price leadership. D) None of the above
Economics