Assume that Rachel receives marginal utility of 20 from Bob Marley CDs and marginal utility of 30 from Sade CDs. If the price of Bob Marley CDs is $10 and the price of Sade CDs is $15, can Rachel increase her total utility without spending any more money? Group of answer choices No, because the bang for the buck is equal for both goods, Rachel cannot increase her total utility without spending more money. Yes, Rachel should consume Bob Marley CDs only since they have a lower price per unit. Yes, Rachel should consume fewer Bob Marley CDs and more Sade CDs to increase her total utility. Yes, Rachel should consume Sade CDs only because they give her more utility.
Assume that Rachel receives marginal utility of 20 from Bob Marley CDs and marginal utility of 30 from Sade CDs. If the price of Bob Marley CDs is $10 and the price of Sade CDs is $15, can Rachel increase her total utility without spending any more money? Group of answer choices No, because the bang for the buck is equal for both goods, Rachel cannot increase her total utility without spending more money. Yes, Rachel should consume Bob Marley CDs only since they have a lower price per unit. Yes, Rachel should consume fewer Bob Marley CDs and more Sade CDs to increase her total utility. Yes, Rachel should consume Sade CDs only because they give her more utility.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter5: Consumer Choice: Individual And Market Demand
Section: Chapter Questions
Problem 3DQ
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Question
Assume that Rachel receives marginal utility of 20 from Bob Marley CDs and marginal utility of 30 from Sade CDs. If the price of Bob Marley CDs is $10 and the price of Sade CDs is $15, can Rachel increase her total utility without spending any more money?
Group of answer choices
No, because the bang for the buck is equal for both goods, Rachel cannot increase her total utility without spending more money.
Yes, Rachel should consume Bob Marley CDs only since they have a lower price per unit.
Yes, Rachel should consume fewer Bob Marley CDs and more Sade CDs to increase her total utility.
Yes, Rachel should consume Sade CDs only because they give her more utility.
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