Lin is maximizing total utility while consuming food and clothing. Her marginal utilities of food and clothing are 50 utils and 25 utils, respectively. If clothing is priced at $10 per unit, the price of a unit of food
a. must be rising
b. must be falling
c. must equal $10 as well
d. must equal $20
e. cannot be determined without additional information.
D
Economics
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The quantity of shoes produced is measured along the horizontal axis of a PPF and the quantity of shirts is measured along the vertical axis. As you move down toward the right along the PPF, the marginal cost of
A) shoes decreases. B) shoes increases. C) shirts increases. D) shoes and shirts is equal at the midpoint between the vertical and horizontal axis.
Economics
What are ration coupons and what is their purpose? Provide a historical or current example
What will be an ideal response?
Economics