Jennifer consumes both apples and bread. Let Pa be the price of an apple and Pb the price of a loaf of bread. TUa is her total utility from apples and TUb is her total utility from bread
MUa is her marginal utility from apples and MUb is her marginal utility from bread. When Jennifer is in consumer equilibrium A) MUa/TUa = MUb/TUb.
B) MUa/Pb = MUb/Pa.
C) MUa/Pa = MUb/Pb.
D) TUa/Pb = TUb/Pb.
C
Economics
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Refer to Scenario 8.2. The result of the tax in the long run will be that
A) Q falls from 30,000; P rises by less than $20,000. B) Q falls from 30,000; P rises by $20,000. C) Q falls from 30,000; P does not change. D) Q stays at 30,000; P rises by $20,000. E) Q stays at 30,000; P rises by less than $20,000.
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