Alfred derives utility from consuming iced tea and lemonade. For the bundle he currently consumes, the marginal utility he receives from iced tea is 16 utils, and the marginal utility he receives from lemonade is 8 utils
Instead of consuming this bundle, Alfred should: A) buy more iced tea and less lemonade.
B) buy more lemonade and less iced tea.
C) buy more iced tea and lemonade.
D) buy less iced tea and lemonade.
E) none of the above is necessarily correct.
E
You might also like to view...
Based on the table showing income inequality in the United States, what happened to the lowest fifth’s share of income between 1935 and 2017?
a. The percentage of income steadily dropped over time.
b. The percentage of income steadily increased over time.
c. The percentage of income dropped but then grew to higher than ever.
d. The percentage of income grew but then dropped to lower than ever.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C