Jane is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50 and her marginal utility from clothes is 12.5. If food is priced at $20 per unit the price of clothing per unit must be: a- 2.50 b- 2 dollars C- 5S

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 2SCQ: Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to...
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Jane is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50
and her marginal utility from clothes is 12.5. If food is priced at $20 per unit the price of clothing per unit
must be:
a- 2,50
b-2 dollars
C- 5$
d- 20$
Transcribed Image Text:Jane is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50 and her marginal utility from clothes is 12.5. If food is priced at $20 per unit the price of clothing per unit must be: a- 2,50 b-2 dollars C- 5$ d- 20$
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