Samantha is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50, and her marginal utility from clothing is 25 . If clothing is priced at $10 per unit, the price of food per unit must be
a. $2.
b. $2.50.
c. $5.
d. $20.
d
Economics
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The law of demand asserts that all else equal, if the price of a good ________, the quantity demanded of that good ________
A) stays the same; decreases B) falls; decreases C) rises; stays the same D) falls; increases E) None of the above is correct.
Economics
Fluctuations in the current account balance are mainly the result of fluctuations in
A) net interest. B) net exports. C) foreign reserves. D) net transfers. E) imports of capital.
Economics