Sharon purchases two products with a given fixed budget, orange juice and soda. Her marginal utility from orange juice is 60 and her marginal utility from soda is 30. The price of a bottle of orange juice is $2.00 and the price of soda is $1.00. These data suggest that:
A. Sharon is maximizing her utility from the given fixed budget
B. Sharon should buy more orange juice and less soda
C. Sharon should buy more soda and less orange juice
D. Sharon should buy less orange juice and soda
A. Sharon is maximizing her utility from the given fixed budget
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An increase in government transfer payments will shift the aggregate demand curve to the right
A) by the initial change in consumption arising from the change in transfer payment × the spending multiplier. B) by the initial change in income arising from the change in transfer payment × the spending multiplier. C) by the change in transfer payments × times the spending multiplier. D) by the change in transfer payments × times the marginal propensity to consume
If marginal product is at a maximum, then marginal cost is at a minimum
a. True b. False Indicate whether the statement is true or false