Suppose the marginal utility for a $5 submarine sandwich is 100. In addition, the marginal utility for a $10 pizza is 250. Which of the following best explains what Jessica should do if she can afford to buy both but only wants one thing for dinner? Buy the pizza, which has a higher marginal utility. Buy the pizza since the marginal utility per dollar spent is higher than that of the sub. Buy the submarine sandwich, which is cheaper. Buy the submarine sandwich since the marginal utility per dollar spent is less than that of the pizza.
Suppose the marginal utility for a $5 submarine sandwich is 100. In addition, the marginal utility for a $10 pizza is 250. Which of the following best explains what Jessica should do if she can afford to buy both but only wants one thing for dinner? Buy the pizza, which has a higher marginal utility. Buy the pizza since the marginal utility per dollar spent is higher than that of the sub. Buy the submarine sandwich, which is cheaper. Buy the submarine sandwich since the marginal utility per dollar spent is less than that of the pizza.
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 8P
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